REGISTRATION STATEMENT PURSUANT TO SECTION 12(b) OR (g) OF THE SECURITIES EXCHANGE ACT OF 1934 |
ANNUAL REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
SHELL COMPANY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
Title of Each Class | Name of Each Exchange On Which Registered | |
American Depositary Shares, each representing 100 H Shares of par value RMB 1.00 per share | New York Stock Exchange, Inc. | |
H Shares of par value RMB 1.00 per share | New York Stock Exchange, Inc.* |
H Shares, par value RMB 1.00 per share | 25,513,438,600 |
A Shares, par value RMB 1.00 per share |
Large accelerated filer X | Accelerated filer __ | Non-accelerated filer __ |
U.S. GAAP ___ | International Financial Reporting Standards X as issued by the International Accounting Standards Board | Other |
Page | |||||||
ITEM 1. | IDENTITY OF DIRECTORS, SENIOR MANAGEMENT AND ADVISORS | ||||||
ITEM 2. | OFFER STATISTICS AND EXPECTED TIMETABLE | ||||||
ITEM 3. | KEY INFORMATION | ||||||
A. | SELECTED FINANCIAL DATA | ||||||
B. | CAPITALIZATION AND INDEBTEDNESS | 11 | |||||
C. | REASONS FOR THE OFFER AND USE OF PROCEEDS | 11 | |||||
D. | RISK FACTORS | 11 | |||||
ITEM 4. | INFORMATION ON THE COMPANY | ||||||
A. | HISTORY AND DEVELOPMENT OF THE COMPANY | ||||||
B. | BUSINESS OVERVIEW | 21 | |||||
C. | ORGANIZATIONAL STRUCTURE | ||||||
D. | PROPERTY, PLANT AND EQUIPMENT | ||||||
ITEM 4A. | UNRESOLVED STAFF COMMENTS | ||||||
ITEM 5. | OPERATING AND FINANCIAL REVIEW AND PROSPECTS | ||||||
A. | GENERAL | ||||||
B. | CONSOLIDATED RESULTS OF OPERATIONS | ||||||
C. | DISCUSSIONS ON RESULTS OF SEGMENT OPERATIONS | 47 | |||||
D. | LIQUIDITY AND CAPITAL RESOURCES | ||||||
ITEM 6. | DIRECTORS, SENIOR MANAGEMENT AND EMPLOYEES | ||||||
A. | DIRECTORS, SUPERVISORS AND SENIOR MANAGEMENT | ||||||
B. | COMPENSATION | 63 | |||||
C. | BOARD PRACTICE | 64 | |||||
D. | EMPLOYEES | 65 | |||||
E. | SHARE OWNERSHIP | 66 | |||||
ITEM 7. | MAJOR SHAREHOLDERS AND RELATED PARTY TRANSACTIONS | 66 | |||||
A. | MAJOR SHAREHOLDERS | 66 | |||||
B. | RELATED PARTY TRANSACTIONS | 67 | |||||
C. | INTERESTS OF EXPERTS AND COUNSEL | 68 |
ITEM 8. | FINANCIAL INFORMATION | 68 | |||||
A. | CONSOLIDATED STATEMENTS AND OTHER FINANCIAL INFORMATION | 68 | |||||
B. | SIGNIFICANT CHANGES | ||||||
ITEM 9. | THE OFFER AND LISTING | 69 | |||||
A. | OFFER AND LISTING DETAILS | 69 | |||||
ITEM 10. | ADDITIONAL INFORMATION | 70 | |||||
A. | SHARE CAPITAL | 70 | |||||
B. | MEMORANDUM AND ARTICLES OF ASSOCIATION | 70 | |||||
C. | MATERIAL CONTRACTS | 77 | |||||
D. | EXCHANGE CONTROLS | 77 | |||||
E. | TAXATION | 78 | |||||
F. | DIVIDENDS AND PAYING AGENTS | ||||||
G. | STATEMENT BY EXPERTS | ||||||
H. | DOCUMENTS ON DISPLAY | ||||||
I. | SUBSIDIARY INFORMATION | ||||||
ITEM 11. | QUALITATIVE AND QUANTITATIVE DISCLOSURES ABOUT MARKET RISK | ||||||
ITEM 12. | DESCRIPTION OF SECURITIES OTHER THAN EQUITY SECURITIES | ||||||
ITEM 13. | DEFAULTS, DIVIDEND ARREARAGES AND DELINQUENCIES | ||||||
ITEM 14. | MATERIAL MODIFICATIONS TO THE RIGHTS OF SECURITY HOLDERS AND USE OF PROCEEDS | ||||||
A. | MATERIAL MODIFICATIONS TO THE RIGHTS TO SECURITIES HOLDERS | ||||||
B. | USE OF PROCEEDS | ||||||
ITEM 15. | CONTROLS AND PROCEDURES | 88 | |||||
ITEM 16. | RESERVED | ||||||
ITEM | 16A | AUDIT COMMITTEE FINANCIAL EXPERT | |||||
ITEM 16B. | CODE OF ETHICS | ||||||
ITEM 16C. | PRINCIPAL ACCOUNTANT FEES AND SERVICES | 89 | |||||
ITEM 16D. | EXEMPTIONS FROM THE LISTING STANDARDS FOR AUDIT COMMITTEES | ||||||
ITEM 16E. | PURCHASES OF EQUITY SECURITIES BY THE ISSUER AND AFFILIATED PURCHASERS |
ITEM 16F. | CHANGE IN REGISTRANT’S CERTIFYING ACCOUNTANT |
ITEM 16G. | COMPARISON OF NEW YORK STOCK EXCHANGE CORPORATE GOVERNANCE RULES AND CHINA CORPORATE GOVERNANCE RULES FOR LISTED COMPANIES | |||||
ITEM 16H. | MINE SAFETY DISCLOSURE | |||||
ITEM 17. | FINANCIAL STATEMENTS | |||||
ITEM 18. | FINANCIAL STATEMENTS | |||||
ITEM 19. | EXHIBITS |
· | “Sinopec Corp.”, “we”, “our” and “us” are to China Petroleum & Chemical Corporation, a PRC joint stock limited company, and its subsidiaries; |
· | “Sinopec Group Company” are to our controlling shareholder, China Petrochemical Corporation, a PRC limited liability company; |
· | “Sinopec Group” are to the Sinopec Group Company and its subsidiaries other than Sinopec Corp. and its subsidiaries; |
· | “provinces” are to provinces and to provincial-level autonomous regions and municipalities in China which are directly under the supervision of the central PRC government; |
· | “RMB” are to Renminbi, the currency of the PRC; |
· | “HK$” are to Hong Kong dollar, the currency of the Hong Kong Special Administrative Region of the PRC; and |
· | “US$” are to US dollars, the currency of the United States of America. |
· | “BOE” are to barrels-of-oil equivalent. |
· | “primary distillation capacity” are to the crude oil throughput capacity of a refinery’s crude oil distillation units, calculated by estimating the number of days in a year that such crude oil distillation units are expected to operate, excluding downtime for regular maintenance, and multiplying that number by the amount equal to the units’ optimal daily crude oil throughput. |
· | “rated capacity” are to the output capacity of a given production unit or, where appropriate, the throughput capacity, calculated by estimating the number of days in a year that such production unit is expected to operate, excluding downtime for regular maintenance, and multiplying that number by an amount equal to the unit’s optimal daily output or throughput, as the case may be. |
Noon Buying Rate(1) | ||||||||||||||||
Period | End | Average(2) | High | Low | ||||||||||||
(RMB per US$1.00) | ||||||||||||||||
2010 | 6.6000 | 6.7603 | 6.8330 | 6.6000 | ||||||||||||
2011 | 6.2939 | 6.4475 | 6.6364 | 6.2939 | ||||||||||||
2012 | 6.2301 | 6.2990 | 6.3879 | 6.2221 | ||||||||||||
2013 | 6.0537 | 6.1412 | 6.2438 | 6.0537 | ||||||||||||
2014 | 6.2046 | 6.1620 | 6.2591 | 6.0402 | ||||||||||||
October 2014 | 6.1124 | 6.1251 | 6.1385 | 6.1107 | ||||||||||||
November 2014 | 6.1429 | 6.1249 | 6.1429 | 6.1117 | ||||||||||||
December 2014 | 6.2046 | 6.1886 | 6.2256 | 6.1490 | ||||||||||||
January 2015 | 6.2495 | 6.2181 | 6.2535 | 6.1870 | ||||||||||||
February 2015 | 6.2695 | 6.2518 | 6.2695 | 6.2399 | ||||||||||||
March 2015 | 6.1990 | 6.2386 | 6.2741 | 6.1955 | ||||||||||||
April 2015 (through April 3, 2015) | 6.1930 | 6.1958 | 6.1976 | 6.1930 |
Noon Buying Rate(1) | ||||||||||||||||
Period | End | Average(2) | High | Low | ||||||||||||
(RMB per US$1.00) | ||||||||||||||||
2012 | 6.2301 | 6.2990 | 6.3879 | 6.2221 | ||||||||||||
2013 | 6.0537 | 6.1412 | 6.2438 | 6.0537 | ||||||||||||
2014 | 6.2046 | 6.1704 | 6.2591 | 6.0402 | ||||||||||||
2015 | 6.4778 | 6.2869 | 6.4896 | 6.1870 | ||||||||||||
2016 | 6.9430 | 6.6549 | 6.9580 | 6.4480 | ||||||||||||
October 2016 | 6.7735 | 6.7303 | 6.7819 | 6.6685 | ||||||||||||
November 2016 | 6.8837 | 6.8402 | 6.9195 | 6.7534 | ||||||||||||
December 2016 | 6.9430 | 6.9198 | 6.9580 | 6.8771 | ||||||||||||
January 2017 | 6.8768 | 6.8907 | 6.9575 | 6.8360 | ||||||||||||
February 2017 | 6.8665 | 6.8694 | 6.8821 | 6.8517 | ||||||||||||
March 2017 | 6.8832 | 6.8940 | 6.9132 | 6.8687 | ||||||||||||
April 2017 (through April 17, 2017) | 6.8835 | 6.8899 | 6.8988 | 6.8832 |
(1) | The exchange rates reflect those set forth in the H.10 statistical release of the U.S. Federal Reserve Board. |
(2) | Annual averages are determined by averaging the rates on the last business day of each month during the relevant period. Monthly averages are calculated using the average of the daily rates during the relevant period. |
· | amount and nature of future exploration and development, |
· | future prices of and demand for our products, |
· | future earnings and cash flow, |
· | development projects and drilling prospects, |
· | future plans and capital expenditures, |
· | estimates of proved oil and gas reserves, |
· | exploration prospects and reserves potential, |
· | expansion and other development trends of the petroleum and petrochemical industry, |
· | production forecasts of oil and gas, |
· | expected production or processing capacities, including expected rated capacities and primary distillation capacities, of units or facilities not yet in operation, |
· | expansion and growth of our business and operations, and |
· | our prospective operational and financial information. |
· | fluctuations in crude oil and natural gas prices, |
· | fluctuations in prices of our refined oil and chemical products, |
· | failures or delays in achieving production from development projects, |
· | potential acquisitions and other business opportunities, |
· | general economic, market and business conditions, and |
· | other risks and factors beyond our control. |
ITEM 1. | IDENTITY OF DIRECTORS, SENIOR MANAGEMENT AND ADVISORS |
ITEM 2. | OFFER STATISTICS AND EXPECTED TIMETABLE |
ITEM 3. | KEY INFORMATION |
A. SELECTED FINANCIAL DATA |
Year Ended December 31, | ||||||||||||||||||||
2012 | 2013 | 2014 | 2015 | 2016 | ||||||||||||||||
(RMB in millions, except per share, per ADS data and number of shares) | ||||||||||||||||||||
Consolidated Statement of Income Data(1): | ||||||||||||||||||||
Operating revenues | 2,787,684 | 2,881,928 | 2,827,566 | 2,020,375 | 1,930,911 | |||||||||||||||
Operating expenses | (2,689,080 | ) | (2,785,165 | ) | (2,754,127 | ) | (1,963,553 | ) | (1,853,718 | ) | ||||||||||
Operating income | 98,604 | 96,763 | 73,439 | 56,822 | 77,193 | |||||||||||||||
Earnings before income tax | 91,012 | 95,444 | 65,818 | 56,411 | 80,151 | |||||||||||||||
Tax expense | (23,846 | ) | (24,763 | ) | (17,571 | ) | (12,613 | ) | (20,707 | ) | ||||||||||
Net income attributable to equity shareholders of the Company | 64,082 | 66,348 | 46,639 | 32,512 | 46,672 | |||||||||||||||
Basic earnings per share(2) | 0.568 | 0.571 | 0.399 | 0.269 | 0.385 | |||||||||||||||
Basic earnings per ADS(2) | 56.78 | 57.14 | 39.92 | 26.90 | 38.55 | |||||||||||||||
Diluted earnings per share(2) | 0.546 | 0.536 | 0.399 | 0.269 | 0.385 | |||||||||||||||
Diluted earnings per ADS(2) | 54.63 | 53.59 | 39.89 | 26.90 | 38.55 | |||||||||||||||
Cash dividends declared per share | 0.231 | 0.240 | 0.200 | 0.150 | 0.249 | |||||||||||||||
Segment Operating Income/(Loss) | ||||||||||||||||||||
Exploration and production | 70,054 | 54,793 | 47,057 | (17,418 | ) | (36,641 | ) | |||||||||||||
Refining | (11,444 | ) | 8,599 | (1,954 | ) | 20,959 | 56,265 | |||||||||||||
Marketing and distribution | 42,652 | 35,143 | 29,449 | 28,855 | 32,153 | |||||||||||||||
Chemicals | 1,120 | 846 | (2,229 | ) | 19,476 | 20,623 | ||||||||||||||
Corporate and others | (2,443 | ) | (3,412 | ) | (1,063 | ) | 384 | 3,212 | ||||||||||||
Elimination of inter-segment sales | (1,335 | ) | 794 | 2,179 | 4,566 | 1,581 | ||||||||||||||
Operating income | 98,604 | 96,763 | 73,439 | 56,822 | 77,193 | |||||||||||||||
Shares | ||||||||||||||||||||
Basic weighted average number of A and H shares | 112,853,724,741 | 116,102,910,373 | 116,822,487,451 | 120,852,547,200 | 121,071,209,646 | |||||||||||||||
Diluted weighted average number of A and H shares | 118,412,133,133 | 121,858,818,276 | 117,242,396,710 | 120,852,547,200 | 121,071,209,646 | |||||||||||||||
As of December 31, | ||||||||||||||||||||
2012 | 2013 | 2014 | 2015 | 2016 | ||||||||||||||||
(RMB in millions) | ||||||||||||||||||||
Consolidated Balance Sheet Data(1): | ||||||||||||||||||||
Cash and cash equivalents | 12,124 | 16,336 | 10,526 | 68,933 | 124,468 | |||||||||||||||
Total current assets | 366,961 | 374,578 | 361,559 | 333,657 | 412,261 | |||||||||||||||
Total non-current assets | 895,761 | 1,012,703 | 1,094,035 | 1,113,611 | 1,086,348 | |||||||||||||||
Total assets | 1,262,722 | 1,387,281 | 1,455,594 | 1,447,268 | 1,498,609 | |||||||||||||||
Total current liabilities | (513,704 | ) | (572,018 | ) | (604,451 | ) | (462,832 | ) | (485,543 | ) |
As of December 31, | ||||||||||||||||||||
2012 | 2013 | 2014 | 2015 | 2016 | ||||||||||||||||
(RMB in millions) | ||||||||||||||||||||
Short-term debts and loans from Sinopec Group Company and its affiliates (including current portion of long-term debts) | (115,982 | ) | (163,870 | ) | (178,148 | ) | (115,446 | ) | (74,819 | ) | ||||||||||
Long-term debts and loans from Sinopec Group Company and its affiliates (excluding current portion of long-term debts) | (162,116 | ) | (145,590 | ) | (150,932 | ) | (139,746 | ) | (117,446 | ) | ||||||||||
Total equity attributable to equity shareholders of the Company | (513,315 | ) | (571,087 | ) | (595,255 | ) | (676,197 | ) | (710,994 | ) | ||||||||||
Total equity | (552,401 | ) | (625,778 | ) | (649,603 | ) | (788,161 | ) | (831,235 | ) |
Year Ended December 31 | ||||||||||||||||||||
2012 | 2013 | 2014 | 2015 | 2016 | ||||||||||||||||
(RMB in millions) | ||||||||||||||||||||
Statement of Cash Flow and Other Financial Data(1): | ||||||||||||||||||||
Net cash generated from operating activities | 142,622 | 151,470 | 148,019 | 165,740 | 214,543 | |||||||||||||||
Net cash generated from/(used in) financing activities | 5,272 | 31,146 | (21,524 | ) | 9,093 | (93,047 | ) | |||||||||||||
Net cash used in investing activities | (161,792 | ) | (178,322 | ) | (132,321 | ) | (116,719 | ) | (66,217 | ) | ||||||||||
Capital expenditure | ||||||||||||||||||||
Exploration and production | 79,071 | 105,311 | 80,196 | 54,710 | 32,187 | |||||||||||||||
Refining | 32,161 | 26,064 | 27,957 | 15,132 | 14,347 | |||||||||||||||
Marketing and distribution | 31,723 | 29,486 | 26,989 | 22,115 | 18,493 | |||||||||||||||
Chemicals | 23,692 | 19,263 | 15,944 | 17,634 | 8,849 | |||||||||||||||
Corporate and others | 2,397 | 5,076 | 3,648 | 2,821 | 2,580 | |||||||||||||||
Total | 169,044 | 185,200 | 154,734 | 112,412 | 76,456 |
Year Ended December 31, | ||||||||||||||||||||
2010 | 2011 | 2012 | 2013 | 2014 | ||||||||||||||||
(RMB in millions, except per share, per ADS data and number of shares) | ||||||||||||||||||||
Consolidated Statement of Income Data(1): | ||||||||||||||||||||
Operating revenues | 1,913,182 | 2,505,683 | 2,786,045 | 2,880,311 | 2,825,914 | |||||||||||||||
Operating expenses | (1,808,208 | ) | (2,400,153 | ) | (2,687,383 | ) | (2,783,526 | ) | (2,752,427 | ) | ||||||||||
Operating income | 104,974 | 105,530 | 98,662 | 96,785 | 73,487 | |||||||||||||||
Earnings before income tax | 103,663 | 104,565 | 90,642 | 95,052 | 65,504 | |||||||||||||||
Tax expense | (25,681 | ) | (26,120 | ) | (23,846 | ) | (24,763 | ) | (17,571 | ) | ||||||||||
Net income attributable to equity shareholders of the Company | 71,782 | 73,225 | 63,879 | 66,132 | 46,466 | |||||||||||||||
Basic earnings per share(2) | 0.637 | 0.650 | 0.566 | 0.570 | 0.398 | |||||||||||||||
Basic earnings per ADS(2) | 63.69 | 65.00 | 56.62 | 56.96 | 39.77 | |||||||||||||||
Diluted earnings per share(2) | 0.631 | 0.625 | 0.545 | 0.534 | 0.397 | |||||||||||||||
Diluted earnings per ADS(2) | 63.08 | 62.46 | 54.46 | 53.41 | 39.74 | |||||||||||||||
Cash dividends declared per share | 0.146 | 0.177 | 0.231 | 0.244 | 0.240 | |||||||||||||||
Segment Results | ||||||||||||||||||||
Exploration and production | 47,149 | 71,631 | 70,054 | 54,793 | 47,057 | |||||||||||||||
Refining | 15,851 | (35,780 | ) | (11,444 | ) | 8,599 | (1,954 | ) | ||||||||||||
Marketing and distribution | 30,760 | 44,696 | 42,652 | 35,143 | 29,449 | |||||||||||||||
Chemicals | 15,011 | 26,732 | 1,178 | 868 | (2,181 | ) | ||||||||||||||
Corporate and others | (2,342 | ) | (2,640 | ) | (2,443 | ) | (3,412 | ) | (1,063 | ) | ||||||||||
Elimination of inter-segment sales | (1,455 | ) | 891 | (1,335 | ) | 794 | 2,179 | |||||||||||||
Operating income | 104,974 | 105,530 | 98,662 | 96,785 | 73,487 | |||||||||||||||
Shares | ||||||||||||||||||||
Basic weighted average number of A and H shares | 112,713,267,514 | 112,713,299,453 | 112,853,724,741 | 116,102,910,373 | 116,822,487,451 | |||||||||||||||
Diluted weighted average number of A and H shares | 114,126,836,287 | 116,733,935,215 | 118,412,133,133 | 121,858,818,276 | 117,242,396,710 |
As of December 31, | ||||||||||||||||||||
2010 | 2011 | 2012 | 2013 | 2014 | ||||||||||||||||
(RMB in millions) | ||||||||||||||||||||
Consolidated Balance Sheet Data(1): | ||||||||||||||||||||
Cash and cash equivalents | 17,008 | 24,647 | 10,456 | 15,046 | 9,355 | |||||||||||||||
Total current assets | 260,229 | 342,755 | 365,015 | 373,010 | 360,144 | |||||||||||||||
Total non-current assets | 727,642 | 794,423 | 892,929 | 1,009,906 | 1,091,224 | |||||||||||||||
Total assets | 987,871 | 1,137,178 | 1,257,944 | 1,382,916 | 1,451,368 | |||||||||||||||
Total current liabilities | (336,406 | ) | (444,240 | ) | (513,373 | ) | (571,822 | ) | (604,257 | ) | ||||||||||
Short-term debts and loans from Sinopec Group Company and its affiliates (including current portion of long-term debts) | (35,828 | ) | (80,373 | ) | (115,982 | ) | (163,870 | ) | (178,148 | ) | ||||||||||
Long-term debts and loans from Sinopec Group Company and its affiliates (excluding current portion of long-term debts) | (174,075 | ) | (154,457 | ) | (162,116 | ) | (145,590 | ) | (150,932 | ) | ||||||||||
Total equity attributable to equity shareholders of the Company | (419,604 | ) | (472,328 | ) | (510,914 | ) | (568,803 | ) | (593,041 | ) | ||||||||||
Total equity | (451,036 | ) | (507,344 | ) | (548,036 | ) | (621,626 | ) | (645,577 | ) |
Year Ended December 31 | ||||||||||||||||||||
2010 | 2011 | 2012 | 2013 | 2014 | ||||||||||||||||
(RMB in millions) | ||||||||||||||||||||
Statement of Cash Flow and Other Financial Data(1): | ||||||||||||||||||||
Net cash generated from operating activities | 170,333 | 150,622 | 142,380 | 151,893 | 148,347 | |||||||||||||||
Net cash (used in)/generated from financing activities | (56,294 | ) | (2,516 | ) | 5,628 | 31,519 | (21, 421 | ) | ||||||||||||
Net cash used in investing activities | (105,788 | ) | (140,449 | ) | (162,197 | ) | (178,740 | ) | (132,633 | ) | ||||||||||
Capital expenditure | ||||||||||||||||||||
Exploration and production | 53,801 | 62,050 | 79,071 | 105,311 | 80,196 | |||||||||||||||
Refining | 20,015 | 25,767 | 32,161 | 26,064 | 27,957 | |||||||||||||||
Marketing and distribution | 30,829 | 30,387 | 31,723 | 29,486 | 26,989 | |||||||||||||||
Chemicals | 18,422 | 16,980 | 23,616 | 19,189 | 15,850 | |||||||||||||||
Corporate and others | 1,894 | 2,488 | 2,397 | 5,076 | 3,648 | |||||||||||||||
Total | 124,961 | 137,672 | 168,968 | 185,126 | 154,640 |
(1) | The acquisition of 55% equity interest of |
(2) | Basic earnings per share have been computed by dividing net income attributable to equity shareholders of our company by the weighted average number of shares in issue. Basic and diluted earnings per ADS have been computed as if all of our issued |
B. | CAPITALIZATION AND INDEBTEDNESS |
C. | REASONS FOR THE OFFER AND USE OF PROCEEDS |
D. | RISK FACTORS |
· | the quality and quantity of technical and economic data; |
· | the prevailing oil and gas prices applicable to our production; |
· | the production performance of the reservoirs; and |
· | extensive engineering judgments. |
· | unexpected drilling conditions; |
· | pressure or irregularities in geological formations; |
· | equipment failures or accidents; |
· | oil well blowouts; |
· | adverse weather conditions or natural disasters; |
· | compliance with existing or enhanced environmental regulations; |
· | governmental requirements and standards; or |
· | delays in the availability of drilling rigs and delivery and maintenance of equipment. |
· | ability to generate sufficient cash flows from operations to finance its expenditures, investments and other requirements, which are affected by changes in crude oil and natural gas prices and sales volumes, and other factors; |
· | availability and terms of external financing; |
· | mix of exploration and development activities conducted on an independent basis and those conducted jointly with other partners; |
· | extent to which its ability to influence or adjust plans for exploration and development related expenditures is limited under joint operating agreements for those projects in which it has partners; |
· | government approvals required for exploration and development-related expenditures and investments in jurisdictions in which it conducts business; and |
· | economic, political and other conditions in jurisdictions in which it conducts business. |
· | the imposition of |
· | the levy of fines and payments for damages for serious environmental offenses; |
· | the government, at its discretion, to seal up or close down any facility which |
· | litigations and liabilities arising from pollutions and damages to the environment and public interests. |
· | import of crude oil and other materials; |
· | debt service on foreign currency-denominated debt; |
· | purchases of imported equipment; |
· | payment of the principals and interests of bonds issued overseas; and |
· | payment of any cash dividends declared in respect of the H shares (including ADS). |
ITEM 4. | INFORMATION ON THE COMPANY |
A. | HISTORY AND DEVELOPMENT OF THE COMPANY |
· | exploration for, development, production and marketing of crude oil and natural gas; |
· | refining of crude oil and marketing and distribution of refined |
· | production and sales of petrochemical products. |
· | exploring and developing oil and gas reserves overseas; |
· | operating certain petrochemical |
· | providing geophysical exploration, and well drilling, survey, logging and downhole operational services; |
· | manufacturing production equipment and providing equipment maintenance services; |
· | providing construction services; |
· | providing utilities, such as electricity and water; and |
· | providing other operational services including transportation services. |
B. | BUSINESS OVERVIEW |
As of December 31, | ||||
Crude Oil Proved Reserves | (in millions of barrels) | |||
Developed | ||||
Subsidiaries | ||||
China | ||||
Shengli | ||||
Others | ||||
Overseas | ||||
Subtotal | ||||
Equity-accounted investments | ||||
Overseas | 273 | |||
Subtotal | ||||
Total Developed | ||||
Undeveloped | ||||
Subsidiaries | ||||
China | ||||
Shengli | ||||
Others |
Overseas | ||||
Subtotal | ||||
Equity-accounted investments | ||||
China | - | |||
Overseas | 23 | |||
Subtotal | 23 | |||
Total Undeveloped | ||||
Total Oil Proved Reserves |
As of December 31, 2016 | ||||
Natural Gas Proved Reserves | (in billions of cubic feet) | |||
Developed | ||||
Subsidiaries | ||||
China | ||||
Puguang | ||||
Others | 2,880 | |||
Overseas | - | |||
Subtotal | ||||
Equity-accounted investments | ||||
Overseas | 18 | |||
Subtotal | ||||
Total Developed | ||||
Undeveloped | ||||
Subsidiaries | ||||
China | ||||
Puguang | - | |||
Fuling | - | |||
Others | ||||
Overseas | - | |||
Subtotal | ||||
Equity-accounted investments | ||||
Overseas | - | |||
Subtotal | ||||
Total Undeveloped | ||||
Total Natural Gas Proved Reserves |
Year Ended December 31, | Year Ended December 31, | |||||||||||||||||||||||
2012 | 2013 | 2014 | 2014 | 2015 | 2016 | |||||||||||||||||||
(in thousands of barrels) | (in thousands of barrels) | |||||||||||||||||||||||
Average Daily Crude Oil Production | ||||||||||||||||||||||||
China | 852 | 812 | 692 | |||||||||||||||||||||
Subsidiaries | 852 | 812 | 692 | |||||||||||||||||||||
Shengli | 536 | 540 | 542 | 542 | 527 | 464 | ||||||||||||||||||
Others | 304 | 312 | 310 | 310 | 285 | 228 | ||||||||||||||||||
Overseas | 137 | 146 | 138 | |||||||||||||||||||||
Subsidiary(1) | 59 | 59 | 42 | |||||||||||||||||||||
Equity-accounted investments(2) | - | 10 | 95 | |||||||||||||||||||||
Subsidiary | 42 | 54 | 51 | |||||||||||||||||||||
Equity-accounted investments | 95 | 92 | 87 | |||||||||||||||||||||
Total Crude Oil Production | 899 | 921 | 989 | 989 | 958 | 830 |
Year Ended December 31, | Year Ended December 31, | |||||||||||||||||||||||
2012 | 2013 | 2014 | 2014 | 2015 | 2016 | |||||||||||||||||||
(in millions of cubic feet) | (in millions of cubic feet) | |||||||||||||||||||||||
Average Daily Natural Gas Production | ||||||||||||||||||||||||
China | 1,951 | 1,952 | 2,083 | |||||||||||||||||||||
Subsidiaries | 1,951 | 1,952 | 2,083 | |||||||||||||||||||||
Puguang | 732 | 784 | 761 | 761 | 530 | 362 | ||||||||||||||||||
Fuling | 105 | 306 | 486 | |||||||||||||||||||||
Others | 905 | 1024 | 1,190 | 1,085 | 1,116 | 1,235 | ||||||||||||||||||
Overseas | - | - | 11 | 11 | 11 | 10 | ||||||||||||||||||
Equity-accounted investments | 11 | 11 | 10 | |||||||||||||||||||||
Total Natural Gas Production | 1,637 | 1,808 | 1,962 | 1,962 | 1,963 | 2,093 |
Weighted Average | China | Overseas(1) | Weighted Average | China | Overseas(1) | |||||||||||||||||||
(RMB) | (RMB) | |||||||||||||||||||||||
For the year ended December 31, 2016 | ||||||||||||||||||||||||
Average petroleum lifting cost per BOE | 108.21 | 112.19 | 77.62 | |||||||||||||||||||||
Average realized sales price | ||||||||||||||||||||||||
Per barrel of crude oil | 240.70 | 246.10 | 213.41 | |||||||||||||||||||||
Per thousand cubic meters of natural gas | 1,266.03 | 1,266.03 | - | |||||||||||||||||||||
For the year ended December 31, 2015 | ||||||||||||||||||||||||
Average petroleum lifting cost per BOE | 109.70 | 111.56 | 72.20 | |||||||||||||||||||||
Average realized sales price | ||||||||||||||||||||||||
Per barrel of crude oil | 283.72 | 280.74 | 316.15 | |||||||||||||||||||||
Per thousand cubic meters of natural gas | 1,519.83 | 1,519.83 | - | |||||||||||||||||||||
For the year ended December 31, 2014 | ||||||||||||||||||||||||
Average petroleum lifting cost per BOE | 113.1 | 113.4 | 105.07 | 113.10 | 113.40 | 105.07 | ||||||||||||||||||
Average realized sales price | ||||||||||||||||||||||||
Per barrel of crude oil | 554.71 | 552.73 | 597.24 | 554.71 | 552.73 | 597.24 | ||||||||||||||||||
Per thousand cubic meters of natural gas | 1,598.99 | 1,598.99 | - | 1,598.99 | 1,598.99 | - | ||||||||||||||||||
For the year ended December 31, 2013 | ||||||||||||||||||||||||
Average petroleum lifting cost per BOE | 112.56 | 113.63 | 91.27 | |||||||||||||||||||||
Average realized sales price | ||||||||||||||||||||||||
Per barrel of crude oil | 590.86 | 584.35 | 671.17 | |||||||||||||||||||||
Per thousand cubic meters of natural gas | 1,359.23 | 1,359.23 | - | |||||||||||||||||||||
For the year ended December 31, 2012 | ||||||||||||||||||||||||
Average petroleum lifting cost per BOE | 110.64 | 111.47 | 92.55 | |||||||||||||||||||||
Average realized sales price | ||||||||||||||||||||||||
Per barrel of crude oil | 632.51 | 625.79 | 704.17 | |||||||||||||||||||||
Per thousand cubic meters of natural gas | 1,291.65 | 1,291.65 | - |
The exchange rates we used for overseas data in this table |
As of December 31, | ||||||||||||||||||||||||||||||||||||||||||||||||
2014 | 2015 | 2016 | ||||||||||||||||||||||||||||||||||||||||||||||
Number of Drilled Wells | Exploratory | Development | Exploratory | Development | Exploratory | Development | ||||||||||||||||||||||||||||||||||||||||||
Productive | Dry | Productive | Dry | Productive | Dry | Productive | Dry | Productive | Dry | Productive | Dry | |||||||||||||||||||||||||||||||||||||
China | 334 | 187 | 3,641 | 56 | 373 | 195 | 1,801 | 25 | 266 | 149 | 801 | 6 | ||||||||||||||||||||||||||||||||||||
Subsidiaries | 334 | 187 | 3,641 | 56 | 373 | 195 | 1,801 | 25 | 266 | 149 | 801 | 6 | ||||||||||||||||||||||||||||||||||||
Shengli | 141 | 64 | 2,027 | 30 | 150 | 73 | 1,020 | 18 | 166 | 73 | 462 | 5 | ||||||||||||||||||||||||||||||||||||
Others | 193 | 123 | 1,614 | 26 | 223 | 122 | 781 | 7 | 100 | 76 | 339 | 1 | ||||||||||||||||||||||||||||||||||||
Overseas | 3 | - | 323 | - | - | 1 | 149 | 1 | 2 | 1 | 99 | - | ||||||||||||||||||||||||||||||||||||
Subsidiaries | - | - | 6 | - | - | - | 5 | - | - | - | - | - | ||||||||||||||||||||||||||||||||||||
Equity-accounted investments | 3 | - | 317 | - | - | 1 | 144 | 1 | 2 | 1 | 99 | - | ||||||||||||||||||||||||||||||||||||
Total | 337 | 187 | 3,964 | 56 | 373 | 196 | 1,950 | 26 | 268 | 150 | 900 | 6 |
Total | China | Overseas | ||||||||||||||||||
Shengli | Others | Subsidiary | Equity-accounted investments | |||||||||||||||||
For the year ended December 31, 2014 | ||||||||||||||||||||
Exploratory | ||||||||||||||||||||
Productive | 337 | 141 | 193 | - | 3 | |||||||||||||||
Dry | 187 | 64 | 123 | - | - | |||||||||||||||
Development | ||||||||||||||||||||
Productive | 3,964 | 2,027 | 1,614 | 6 | 317 | |||||||||||||||
Dry | 56 | 30 | 26 | - | - | |||||||||||||||
For the year ended December 31, 2013 | ||||||||||||||||||||
Exploratory | ||||||||||||||||||||
Productive | 350 | 112 | 238 | - | - | |||||||||||||||
Dry | 352 | 96 | 256 | - | - | |||||||||||||||
Development | ||||||||||||||||||||
Productive | 4,513 | 2,490 | 2,016 | 5 | 2 | |||||||||||||||
Dry | 83 | 39 | 44 | - | - | |||||||||||||||
For the year ended December 31, 2012 | ||||||||||||||||||||
Exploratory | ||||||||||||||||||||
Productive | 329 | 101 | 228 | - | - | |||||||||||||||
Dry | 682 | 89 | 593 | - | - | |||||||||||||||
Development | ||||||||||||||||||||
Productive | 3,583 | 2,047 | 1,532 | 4 | - | |||||||||||||||
Dry | 35 | 6 | 29 | - | - |
�� | As of December 31, | As of December 31, | ||||||||||||||||||||||||||||||||||||||||||||||
2013 | 2014 | 2015 | 2016 | |||||||||||||||||||||||||||||||||||||||||||||
Number of Drilling Welling | Gross | Net | Gross | Net | ||||||||||||||||||||||||||||||||||||||||||||
Gross | Net | Gross | Net | Exploratory | Development | Exploratory | Development | Exploratory | Development | Exploratory | Development | |||||||||||||||||||||||||||||||||||||
China | 110 | 152 | 110 | 152 | 78 | 138 | 78 | 138 | ||||||||||||||||||||||||||||||||||||||||
Subsidiaries | 110 | 152 | 110 | 152 | 78 | 138 | 78 | 138 | ||||||||||||||||||||||||||||||||||||||||
Shengli | 93 | 93 | 63 | 63 | 35 | 23 | 35 | 23 | 28 | 21 | 28 | 21 | ||||||||||||||||||||||||||||||||||||
Others | 174 | 174 | 247 | 246 | 75 | 129 | 75 | 129 | 50 | 117 | 50 | 117 | ||||||||||||||||||||||||||||||||||||
Overseas | - | 3 | - | 1 | - | 2 | - | 2 | ||||||||||||||||||||||||||||||||||||||||
Subsidiary | 1 | - | 1 | - | ||||||||||||||||||||||||||||||||||||||||||||
Subsidiaries | - | - | - | - | - | - | - | - | ||||||||||||||||||||||||||||||||||||||||
Equity-accounted investments | 1 | - | 2 | 1 | - | 3 | - | 1 | - | 2 | - | 2 | ||||||||||||||||||||||||||||||||||||
Total Wells Drilling | 269 | 267 | 313 | 310 | ||||||||||||||||||||||||||||||||||||||||||||
Total | 110 | 155 | 110 | 153 | 78 | 140 | 78 | 140 |
As of December 31, | As of December 31, | |||||||||||||||||||||||||||||||
2013 | 2014 | 2015 | 2016 | |||||||||||||||||||||||||||||
Productive Wells for Crude Oil | Gross | Net | Gross | Net | Gross | Net | Gross | Net | ||||||||||||||||||||||||
China | 49,662 | 49,662 | 49,921 | 49,921 | ||||||||||||||||||||||||||||
Subsidiaries | 49,662 | 49,662 | 49,921 | 49,921 | ||||||||||||||||||||||||||||
Shengli | 28,844 | 28,844 | 30,534 | 30,534 | 31,547 | 31,547 | 32,019 | 32,019 | ||||||||||||||||||||||||
Others | 17,281 | 17,281 | 18,058 | 18,058 | 18,115 | 18,115 | 17,902 | 17,902 | ||||||||||||||||||||||||
Overseas | 6,913 | 3,122 | 7,432 | 3,614 | ||||||||||||||||||||||||||||
Subsidiary | 23 | 7 | 25 | 8 | ||||||||||||||||||||||||||||
Subsidiaries | 28 | 15 | 28 | 14 | ||||||||||||||||||||||||||||
Equity-accounted investments | 1,604 | 468 | 7,102 | 2,778 | 6,885 | 3,107 | 7,404 | 3,600 | ||||||||||||||||||||||||
Total | 47,752 | 46,600 | 55,719 | 51,378 | 56,575 | 52,784 | 57,353 | 53,535 |
As of December 31, | As of December 31, | |||||||||||||||||||||||||||||||
2013 | 2014 | 2015 | 2016 | |||||||||||||||||||||||||||||
Productive Wells for Natural Gas | Gross | Net | Gross | Net | Gross | Net | Gross | Net | ||||||||||||||||||||||||
China | 4,758 | 4,727 | 4,966 | 4,932 | ||||||||||||||||||||||||||||
Subsidiaries | 4,758 | 4,727 | 4,966 | 4,932 | ||||||||||||||||||||||||||||
Puguang | 53 | 53 | 54 | 54 | 55 | 55 | 57 | 57 | ||||||||||||||||||||||||
Fuling | 175 | 175 | 253 | 253 | ||||||||||||||||||||||||||||
Others | 4,179 | 4,159 | 4,496 | 4,471 | 4,528 | 4,497 | 4,656 | 4,622 | ||||||||||||||||||||||||
Overseas | - | - | - | - | ||||||||||||||||||||||||||||
Total | 4,232 | 4,212 | 4,550 | 4,525 | 4,758 | 4,727 | 4,966 | 4,932 |
Year Ended December 31, | ||||||||||||
2012 | 2013 | 2014 | ||||||||||
(in million tonnes) | ||||||||||||
Gasoline | 40.55 | 45.56 | 51.22 | |||||||||
Diesel | 77.39 | 77.40 | 74.26 | |||||||||
Kerosene and jet fuel | 15.01 | 17.43 | 20.75 | |||||||||
Light chemical feedstock | 36.33 | 37.97 | 39.17 | |||||||||
Liquefied petroleum gas | 9.92 | 10.56 | 11.25 | |||||||||
Fuel oil | 2.38 | 3.17 | 2.48 |
Year Ended December 31, | ||||||||||||
2014 | 2015 | 2016 | ||||||||||
(in million tonnes) | ||||||||||||
Gasoline | 51.22 | 53.98 | 56.36 | |||||||||
Diesel | 74.26 | 70.05 | 67.34 | |||||||||
Kerosene and jet fuel | 20.75 | 24.35 | 25.47 | |||||||||
Light chemical feedstock | 39.17 | 38.81 | 38.54 | |||||||||
Liquefied petroleum gas | 11.25 | 11.58 | 12.12 | |||||||||
Fuel oil | 2.48 | 1.48 | 0.94 |
As of and for the Year Ended December 31, | As of and for the Year Ended December 31, | |||||||||||||||||||||||
2012 | 2013 | 2014 | 2014 | 2015 | 2016 | |||||||||||||||||||
Primary distillation capacity of crude oil (million tonnes per annum) | 260.90 | 282.20 | 292.40 | 292.40 | 293.20 | 294.7 | ||||||||||||||||||
Refinery throughputs (million tonnes) | 221.31 | 231.95 | 235.38 | 235.38 | 236.49 | 235.5 |
Refinery | Primary Distillation Capacity as of December 31, | |||
(in million tonnes per annum) | ||||
Maoming | 23.5 | |||
Zhenhai | 23.0 | |||
Jinling | 21.0 | |||
Shanghai | 16.0 | |||
Qilu | 14.0 | |||
Yangzi | 14.0 | |||
Fujian | ||||
Tianjin | 13.8 | |||
Guangzhou | 13.2 | |||
Gaoqiao | 13.0 | |||
Qingdao | 12.0 | |||
Changling | 11.5 | |||
Yanshan | ||||
Shijiazhuang | 10.0 | |||
Jiujiang | 10.0 | |||
Hainan | 9.2 | |||
Luoyang | 8.0 | |||
Wuhan | ||||
2012 | 2013 | 2014 | As of December 31, | |||||||||||||||||||||
Total sales volume of refined petroleum products | 173.15 | 179.99 | 189.17 | |||||||||||||||||||||
(in million tonnes) | ||||||||||||||||||||||||
Domestic sales volume of refined petroleum products | 158.99 | 165.42 | 170.97 | |||||||||||||||||||||
(in million tonnes) | ||||||||||||||||||||||||
2014 | 2015 | 2016 | ||||||||||||||||||||||
Total sales volume of refined oil products (in million tonnes) | 189.17 | 189.33 | 194.84 | |||||||||||||||||||||
Domestic sales volume of refined oil products (in million tonnes) | 170.97 | 171.37 | 172.70 | |||||||||||||||||||||
Retail | 107.85 | 113.73 | 117.84 | 117.84 | 119.03 | 120.14 | ||||||||||||||||||
Wholesale and Distribution | 51.14 | 51.69 | 53.13 | 53.13 | 52.34 | 52.56 | ||||||||||||||||||
Average annual throughput of service stations (in tonnes per station) | 3,498 | 3,707 | 3,858 | 3,858 | 3,896 | 3,926 | ||||||||||||||||||
As of December 31, | ||||||||||||||||||||||||
2012 | 2013 | 2014 | As of December 31, | |||||||||||||||||||||
2014 | 2015 | 2016 | ||||||||||||||||||||||
Total number of service stations under Sinopec brand | 30,836 | 30,536 | 30,551 | 30,551 | 30,560 | 30,603 | ||||||||||||||||||
Self-operated service stations | 30,823 | 30,523 | 30,538 | 30,538 | 30,547 | 30,597 |
Our Rated Capacity | Our Production | Major Plants of Production | Our Rated Capacity | Our Production | Major Plants of Production | |||||||||||||
(thousand tonnes per annum) | (thousand tonnes) | (thousand tonnes per annum) | (thousand tonnes) | |||||||||||||||
Ethylene | 10,370 | 10,698 | Yanshan, Shanghai, Yangzi, Qilu, Maoming, Guangzhou, Tianjin, Zhongyuan, SECCO*, BASF-YPC*, Fujian*, Zhongsha (Tianjing)*, Zhenhai and Sino-Korean (Wuhan)* | 10,694 | 11,059 | Yanshan, Shanghai, Yangzi, Qilu, Maoming, Guangzhou, Tianjin, Zhongyuan, SECCO*, BASF-YPC*, Fujian, Zhongsha (Tianjing)*, Zhenhai, Sino-Korean (Wuhan)* and Great Wall EC* | ||||||||||||
Propylene | 9,610 | 8,887 | Yanshan, Shanghai, Yangzi, Qilu, Maoming, Guangzhou, Tianjin, Zhongyuan, SECCO*, BASF-YPC*, Gaoqiao, Anqing, Jinan, Jingmen, Fujian*, Zhongsha (Tianjing)*, Zhenhai and Sino-Korean (Wuhan)* | 9,924 | 8,988 | Yanshan, Shanghai, Yangzi, Qilu, Maoming, Guangzhou, Tianjin, Zhongyuan, SECCO*, BASF-YPC*, Gaoqiao*, Anqing, Jinan, Jingmen, Fujian, Zhongsha (Tianjing)*, Zhenhai, Sino-Korean (Wuhan)* and Great Wall EC* | ||||||||||||
Benzene | 5,256 | 3,996 | Yanshan, Shanghai, Yangzi, Qilu, Guangzhou, Zhenhai, Tianjin, Luoyang, SECCO* and BASF-YPC* | 5,363 | 4,001 | Yanshan, Shanghai, Yangzi, Qilu, Guangzhou, Zhenhai, Tianjin, Luoyang, SECCO*, BASF-YPC*, Fujian*, Maoming, Hainan and Sino-Korean (Wuhan)* | ||||||||||||
Styrene | 2,126 | 2,003 | Yanshan, Qilu, Guangzhou, Maoming, SECCO* and Zhenhai | 2,196 | 2,118 | Yanshan, Qilu, Guangzhou, Maoming, SECCO*, Zhenhai and BASF-YPC* | ||||||||||||
Para-xylene | 4,839 | 4,791 | Shanghai, Yangzi, Qilu, Tianjin, Luoyang, Zhenhai, Jinling, Fujian* and Hainan | 4,839 | 4,331 | Shanghai, Yangzi, Qilu, Tianjin, Luoyang, Zhenhai, Jinling, Fujian* and Hainan | ||||||||||||
Phenol | 608 | 630 | Yanshan, Gaoqiao and Zhongsha (Tianjin) | 757.5 | 613 | Yanshan, Gaoqiao* and Zhongsha (Tianjin)* |
Our Rated Capacity | Our Production | Major Plants of Production | Our Rated Capacity | Our Production | Major Plants of Production | |||||||||||||
(thousand tonnes per annum) | (thousand tonnes) | (thousand tonnes per annum) | (thousand tonnes) | |||||||||||||||
Polyethylene | 6,889 | 7,111 | Yanshan, Shanghai, Yangzi, Qilu, Maoming, Guangzhou, Tianjin, Zhongyuan, SECCO*, BASF-YPC*, Fujian*, Zhongsha (Tianjing)*, Zhenhai and Sino-Korean (Wuhan)* | 7,190 | 7,272 | Yanshan, Shanghai, Yangzi, Qilu, Maoming, Guangzhou, Tianjin, Zhongyuan, SECCO*, BASF-YPC*, Fujian, Zhongsha (Tianjing)*, Zhenhai, Sino-Korean (Wuhan)* and Great Wall EC* | ||||||||||||
Polypropylene | 6,605 | 6,212 | Yanshan, Shanghai, Yangzi, Qilu, Guangzhou, Maoming, Tianjin, Zhongyuan, SECCO*, Jingmen, Fujian*, Zhongsha (Tianjing)*, Zhenhai and Sino-Korean (Wuhan)* | 7,415 | 6,489 | Yanshan, Shanghai, Yangzi, Qilu, Guangzhou, Maoming, Tianjin, Zhongyuan, SECCO*, Jingmen, Fujian, Zhongsha (Tianjing)*, Zhenhai, Sino-Korean (Wuhan)* and Great Wall EC* | ||||||||||||
Polyvinyl chloride | 600 | 224 | Qilu | 600 | 231 | Qilu | ||||||||||||
Polystyrene | 750 | 649 | Yanshan, Qilu, Maoming, Guangzhou, BASF-YPC* and SECCO* | 698 | 588 | Yanshan, Qilu, Maoming, Guangzhou, and SECCO* | ||||||||||||
Acrylonitrile butadiene styrene | 200 | 108 | Gaoqiao | 200 | 166 | Gaoqiao* |
Our Rated Capacity | Our Production | Major Plants of Production | Our Rated Capacity | Our Production | Major Plants of Production | |||||||||||||
(thousand tonnes per annum) | (thousand tonnes) | (thousand tonnes per annum) | (thousand tonnes) | |||||||||||||||
Purified terephthalic acid | 3,119 | 2,476 | Shanghai, Yangzi, Yizheng, Tianjin and Luoyang | 3,119 | 2,494 | Shanghai, Yangzi, Yizheng, Tianjin and Luoyang | ||||||||||||
Ethylene glycol | 2,809 | 1,935 | Yanshan, Shanghai, Yangzi, Tianjin, Maoming, BASF-YPC*, Zhongsha (Tianjing)*, Zhenhai and Hubei | 3,209 | 2,432 | Yanshan, Shanghai, Yangzi, Tianjin, Maoming, BASF-YPC*, Zhongsha (Tianjing)*, Zhenhai | ||||||||||||
Acrylonitrile | 810 | 737 | Shanghai, Anqing, Qilu and SECCO* | 1,070 | 952 | Shanghai, Anqing, Qilu and SECCO* | ||||||||||||
Caprolactam | 660 | 530 | Shijiazhuang and Baling | 709 | 557 | Shijiazhuang and Baling | ||||||||||||
Polyester | 3,168 | 2,588 | Shanghai, Yizheng, Tianjin and Luoyang | 3,378 | 2,798 | Shanghai, Yizheng, Tianjin and Luoyang |
Our Rated Capacity | Our Production | Major Plants of Production | Our Rated Capacity | Our Production | Major Plants of Production | |||||||||||||
(thousand tonnes per annum) | (thousand tonnes) | (thousand tonnes per annum) | (thousand tonnes) | |||||||||||||||
Polyester fiber | 1,227 | 1,053 | Yizheng, Shanghai, Tianjin and Luoyang | 1,220 | 1,004 | Yizheng, Shanghai, Tianjin and Luoyang | ||||||||||||
Acrylic fiber | 265 | 257 | Shanghai, Anqing and Qilu | 265 | 233 | Shanghai, Anqing and Qilu |
Our Rated Capacity | Our Production | Major Plants of Operation | |||||||
(thousand tonnes per annum) | (thousand tonnes) | ||||||||
Cis-polybutadiene rubber | 420 | 359 | Yanshan, Qilu, Maoming and Yangzi | ||||||
Styrene butadiene rubber | 430 | 357 | Qilu, Gaoqiao* and Yangzi | ||||||
Styrene-butadiene-styrene thermoplastic elastomers | 140 | 98 | Yanshan and Maoming | ||||||
Isobutylene isoprene rubber | 135 | 12 | Yanshan | ||||||
Isoprene rubber | 30 | 0 | Yanshan | ||||||
Ethylene propylene rubber | 75 | 30 | Gaoqiao* |
Our Rated Capacity | Our Production | Major Plants of Operation | |||||||
(thousand tonnes per annum) | (thousand tonnes) | ||||||||
Cis-polybutadiene rubber | 540 | 418 | Yanshan, Qilu, Maoming and Gaoqiao | ||||||
Styrene butadiene rubber | 430 | 403 | Yanshan, Qilu, Maoming and Gaoqiao and Yangzi | ||||||
Styrene-butadiene-styrene thermoplastic elastomers | 140 | 93 | Yanshan and Maoming | ||||||
Isobutylene isoprene rubber | 135 | 26 | Yanshan | ||||||
Isoprene rubber | 30 | 0 | Yanshan |
· | Formulating guidance plan for annual production, import and export amount of crude oil, natural gas and petroleum products nationwide based on its forecast on macro-economic conditions in China; |
· | Setting the pricing policy for refined oil products; |
· | Approving certain domestic and overseas resource investment projects which are subject to NDRC’s approval as required by the Catalogue of Investment Projects Approved by the Government |
Tax Item | Tax Base | Tax Rate/Fee Rate | ||
Enterprise income tax | Taxable income | 25% effective from January 1, 2008. | ||
Value-added tax | Revenue | 13% for liquefied petroleum gas, natural gas, and low density polyethylene for production of agricultural film and fertilizers and 17% for other items. 6%, 11% and 17% for taxable services. We generally charge value-added tax to our customers at the time of settlement on top of the selling prices of our products on behalf of the taxation authority. We may directly claim refund from the value-added tax collected from our customers for value-added tax that we paid for (i) purchasing materials consumed during the production process; and (ii) charges paid for drilling and other engineering services. | ||
Consumption tax | Aggregate volume sold or self-consumed | Effective from January 13, 2015, RMB 1.52 per liter for gasoline, naphtha, solvent and lubricant, and RMB 1.2 per liter for diesel, fuel oil and jet kerosene. | ||
Import tariff | CIF China price | 5% for gasoline, 6% for diesel, 9% for jet kerosene and 6% for fuel oil. | ||
Resource tax | Aggregate volume sold or self-consumed | Effective from December 1, 2014, for domestic production of crude oil and natural gas, the applicable tax rate is increased from 5% to 6% of the sales revenue, exemption or deduction may apply if qualified. | ||
Exploration license fee | Area | RMB 100 to RMB 500 per square kilometer per annum. | ||
Production license fee | Area | RMB 1,000 per square kilometer per annum. | ||
Royalty fee(1) | Production volume | Progressive rate of 0-12.5% for crude oil and 0-3% for natural gas. | ||
City construction tax | Total amount of value-added tax, consumption tax and business tax | 1%, 5% and 7%. |
Education | Total amount of value-added tax, consumption tax and business tax | 3% for education surcharge and 2% | ||
Special Oil Income Levy | Any revenue derived from sale of domestically produced crude oil when the realized crude oil price exceeds US$65 per barrel. | Progressive rate of 20% to 40% for revenues derived from crude oil with realized price in excess of US$65 per barrel. |
(1) | Sino-foreign oil and gas exploration and development cooperative projects whose contracts were signed prior to November 1, 2011 and have not yet expired are still subject to royalty fee, and the project companies of those cooperative projects are not subject to any other resource taxes or fees. Sino-foreign oil and gas exploration cooperative projects whose contracts are signed after November 1, 2011 are not subject to royalty fee, but are subject to resource taxes. |
ITEM 4A. | UNRESOLVED STAFF COMMENTS |
None. |
ITEM 5. | OPERATING AND FINANCIAL REVIEW AND PROSPECTS |
A. GENERAL |
Year ended December 31, | ||||||||||||
2014 | 2015 | 2016 | ||||||||||
(RMB in millions) | ||||||||||||
Exploration and production | 2,436 | 4,864 | 11,605 | * | ||||||||
Refining | 29 | 9 | 1,655 | |||||||||
Marketing and distribution | 40 | 19 | 267 | |||||||||
Chemicals | 1,106 | 142 | 2,898 | |||||||||
Corporate and others | 8 | 112 | - | |||||||||
Total | 3,619 | 5,146 | 16,425 |
Year ended December 31, | ||||||||||||
2012 | 2013 | 2014 | ||||||||||
(RMB in millions) | ||||||||||||
Exploration and production | 1,006 | 2,523 | 2,436 | |||||||||
Refining | - | 88 | 29 | |||||||||
Marketing and distribution | 8 | 35 | 40 | |||||||||
Chemicals | - | - | 1,106 | |||||||||
Corporate and others | - | 15 | 8 | |||||||||
Total | 1,014 | 2,661 | 3,619 | |||||||||
Year ended December 31, | ||||||||||||
2014 | 2015 | 2016 | ||||||||||
(RMB in millions) | ||||||||||||
Balance as of January 1 | 574 | 530 | 525 | |||||||||
Impairment losses recognized for the year . | 44 | 40 | 238 | |||||||||
Reversal of impairment losses | (15 | ) | (13 | ) | (8 | ) | ||||||
Written off | (57 | ) | (38 | ) | (72 | ) | ||||||
Others | (16 | ) | 6 | - | ||||||||
Balance as of December 31 | 530 | 525 | 683 |
Year ended December 31, | ||||||||||||
2012 | 2013 | 2014 | ||||||||||
(RMB in millions) | ||||||||||||
Balance as of January 1 | 1,012 | 699 | 574 | |||||||||
Impairment losses recognized for the year | 44 | 36 | 44 | |||||||||
Reversal of impairment losses | (155 | ) | (38 | ) | (15 | ) | ||||||
Written off | (202 | ) | (123 | ) | (57 | ) | ||||||
Others | - | - | (16 | ) | ||||||||
Balance as of December 31 | 699 | 574 | 530 | |||||||||
Year ended December 31, | ||||||||||||
2012 | 2013 | 2014 | ||||||||||
(RMB in millions) | ||||||||||||
Balance as of January 1 | 1,382 | 491 | 1,751 | |||||||||
Allowance for the year | 7,419 | 1,453 | 3,327 | |||||||||
Reversal of allowance on disposal | (378 | ) | (1 | ) | (136 | ) | ||||||
Written off | (7,943 | ) | (192 | ) | (1,327 | ) | ||||||
Others | 11 | - | (12 | ) | ||||||||
Balance as of December 31 | 491 | 1,751 | 3,603 | |||||||||
Year ended December 31, | ||||||||||||
2014 | 2015 | 2016 | ||||||||||
(RMB in millions) | ||||||||||||
Balance as of January 1 | 1,751 | 3,603 | 4,402 | |||||||||
Allowance for the year | 3,327 | 3,687 | 430 | |||||||||
Reversal of allowance on disposal | (136 | ) | (34 | ) | (10 | ) | ||||||
Written off | (1,327 | ) | (2,931 | ) | (4,021 | ) | ||||||
Others | (12 | ) | 77 | 119 | ||||||||
Balance as of December 31 | 3,603 | 4,402 | 920 |
· | Exploration and Production Segment, which consists of our activities related to exploring for and developing, producing and selling crude oil and natural gas; |
· | Refining Segment, which consists of purchasing crude oil from our exploration and production segment and from third parties, processing of crude oil into refined |
· | Marketing and Distribution Segment, which consists of purchasing refined |
· | Chemicals Segment, which consists of purchasing chemical feedstock principally from the refining segment and producing, marketing, selling and distributing chemical products; and |
· | Corporate and Others Segment, which consists principally of trading activities of the import and export subsidiaries and our research and development activities. |
Year Ended December 31, | Change from 2013 to | |||||||||||
2014 | 2013 | 2014 | ||||||||||
(RMB in millions) | % | |||||||||||
Operating revenues | 2,825,914 | 2,880,311 | (1.9 | ) | ||||||||
Sales of goods | 2,781,641 | 2,833,247 | (1.8 | ) | ||||||||
Other operating revenues | 44,273 | 47,064 | (5.9 | ) | ||||||||
Operating expenses | (2,752,427 | ) | (2,783,526 | ) | (1.1 | ) | ||||||
Purchased crude oil, products and operating supplies and expenses | (2,334,399 | ) | (2,371,858 | ) | (1.6 | ) | ||||||
Selling, general and administrative expenses | (68,374 | ) | (69,928 | ) | (2.2 | ) | ||||||
Depreciation, depletion and amortization | (90,097 | ) | (81,265 | ) | 10.9 | |||||||
Exploration expenses, including dry holes | (10,969 | ) | (12,573 | ) | (12.8 | ) | ||||||
Personnel expenses | (57,233 | ) | (55,353 | ) | 3.4 | |||||||
Taxes other than income tax | (191,202 | ) | (190,672 | ) | 0.3 | |||||||
Other operating (expenses)/income, net | (153 | ) | (1,877 | ) | (91.8 | ) | ||||||
Operating income | 73,487 | 96,785 | (24.1 | ) | ||||||||
Net finance costs | (14,229 | ) | (4,246 | ) | 235.1 | |||||||
Investment income and income from associates and jointly controlled entities | 6,246 | 2,513 | 148.5 | |||||||||
Earnings before income tax | 65,504 | 95,052 | (31.1 | ) | ||||||||
Tax expense | (17,571 | ) | (24,763 | ) | (29.0 | ) | ||||||
Net income | 47,933 | 70,289 | (31.8 | ) | ||||||||
Attributable to: | ||||||||||||
Equity shareholders of the Company | 46,466 | 66,132 | (29.7 | ) | ||||||||
Non-controlling interests | 1,467 | 4,157 | (64.7 | ) | ||||||||
Year Ended December 31, | ||||||||||||
2015 | 2016 | Change from 2015 to 2016 | ||||||||||
(RMB in millions) | (%) | |||||||||||
Operating revenues | 2,020,375 | 1,930,911 | (4.4 | ) | ||||||||
Sales of goods | 1,977,877 | 1,880,190 | (4.9 | ) | ||||||||
Other operating revenues | 42,498 | 50,721 | 19.3 | |||||||||
Operating expenses | (1,963,553 | ) | (1,853,718 | ) | (5.6 | ) | ||||||
Purchased crude oil, products and operating supplies and expenses | (1,494,046 | ) | (1,379,691 | ) | (7.7 | ) | ||||||
Selling, general and administrative expenses | (69,491 | ) | (64,360 | ) | (7.4 | ) | ||||||
Depreciation, depletion and amortization | (96,460 | ) | (108,425 | ) | 12.4 | |||||||
Exploration expenses, including dry holes | (10,459 | ) | (11,035 | ) | 5.5 | |||||||
Personnel expenses | (56,619 | ) | (63,887 | ) | 12.8 | |||||||
Taxes other than income tax | (236,349 | ) | (232,006 | ) | (1.8 | ) | ||||||
Other operating (expenses)/income, net | (129 | ) | 5,686 | (4,507.8 | ) | |||||||
Operating income | 56,822 | 77,193 | 35.9 | |||||||||
Net finance costs | (9,239 | ) | (6,611 | ) | (28.4 | ) | ||||||
Investment income and income from associates and jointly controlled entities | 8,828 | 9,569 | 8.4 | |||||||||
Earnings before income tax | 56,411 | 80,151 | 42.1 | |||||||||
Tax expense | (12,613 | ) | (20,707 | ) | 64.2 | |||||||
Net income | 43,798 | 59,444 | 35.7 | |||||||||
Attributable to: | ||||||||||||
Equity shareholders of the Company | 32,512 | 46,672 | 43.6 | |||||||||
Non-controlling interests | 11,286 | 12,772 | 13.2 |
Sales Volume | Change from 2013 to 2014 | Average Realized Price | Change from 2013 to 2014 | |||||||||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||||||||||
(thousand tonnes) | (%) | (RMB per tonne) | (%) | |||||||||||||||||||||
Crude oil | 8,864 | 7,604 | 16.6 | 4,008 | 4,253 | (5.8 | ) | |||||||||||||||||
Domestic | 8,780 | 7,582 | 15.8 | 4,001 | 4,252 | (5.9 | ) | |||||||||||||||||
Oversea | 84 | 22 | 281.8 | 4,691 | 4,678 | 0.3 | ||||||||||||||||||
Natural gas | 16,661 | 15,907 | (1) | 4.7 | 1,589 | 1,336 | (2) | 18.9 | ||||||||||||||||
Gasoline | 64,083 | 59,482 | 7.7 | 8,339 | 8,498 | (1.9 | ) | |||||||||||||||||
Diesel | 102,724 | 99,855 | 2.9 | 6,647 | 7,050 | (5.7 | ) | |||||||||||||||||
Kerosene | 21,845 | 20,162 | 8.3 | 5,710 | 6,116 | (6.6 | ) | |||||||||||||||||
Basic chemical feedstock | 27,277 | 25,838 | 5.6 | 6,151 | 6,870 | (10.5 | ) | |||||||||||||||||
Synthetic fiber monomer and polymer | 6,479 | 6,856 | (5.5 | ) | 7,223 | 8,167 | (11.6 | ) | ||||||||||||||||
Synthetic resin | 11,584 | 10,696 | 8.3 | 9,684 | 9,631 | 0.6 | ||||||||||||||||||
Synthetic fiber | 1,430 | 1,488 | (3.9 | ) | 9,436 | 10,356 | (8.9 | ) | ||||||||||||||||
Synthetic rubber | 1,205 | 1,346 | (10.5 | ) | 10,554 | 12,214 | (13.6 | ) | ||||||||||||||||
Chemical fertilizer | 598 | 1,129 | (47.0 | ) | 1,686 | 1,698 | (0.7 | ) |
Sales Volume | Average Realized Price | |||||||||||||||||||||||
2015 | 2016 | Change from 2015 to 2016 | 2015 | 2016 | Change from 2015 to 2016 | |||||||||||||||||||
(thousand tonnes) | (%) | (RMB per tonne) | (%) | |||||||||||||||||||||
Crude oil | 9,674 | 6,808 | (29.6 | ) | 2,019 | 1,628 | (19.4 | ) | ||||||||||||||||
Domestic | 9,674 | 6,808 | (29.6 | ) | 2,019 | 1,628 | (19.4 | ) | ||||||||||||||||
Natural gas | 18,440 | (1) | 19,008 | (1) | 3.1 | 1,519 | (2) | 1,258 | (2) | (17.2 | ) | |||||||||||||
Gasoline | 69,749 | 77,480 | 11.1 | 6,749 | 6,386 | (5.4 | ) | |||||||||||||||||
Diesel | 95,472 | 91,492 | (4.2 | ) | 4,937 | 4,482 | (9.2 | ) | ||||||||||||||||
Kerosene | 23,028 | 25,164 | 9.3 | 3,387 | 2,807 | (17.1 | ) | |||||||||||||||||
Basic chemical feedstock | 29,608 | 32,248 | 8.9 | 4,175 | 4,054 | (2.9 | ) | |||||||||||||||||
Synthetic fiber monomer and polymer | 6,071 | 7,146 | 17.7 | 5,796 | 5,325 | (8.1 | ) | |||||||||||||||||
Synthetic resin | 11,989 | 12,223 | 2.0 | 7,771 | 7,488 | (3.6 | ) | |||||||||||||||||
Synthetic fiber | 1,380 | 1,369 | (0.8 | ) | 7,740 | 7,113 | (8.1 | ) | ||||||||||||||||
Synthetic rubber | 1,104 | 1,098 | (0.5 | ) | 8,778 | 9,608 | 9.5 | |||||||||||||||||
Chemical Fertilizer | 243 | 714 | 193.8 | 1,823 | 1,612 | (11.6 | ) |
(1) | million cubic meters |
(2) | RMB per thousand cubic meters |
· | crude oil purchase expenses were RMB |
· | other purchasing expenses were RMB |
Year Ended December 31, | ||||||||||||
2014 | 2015 | Change from 2014 to 2015 | ||||||||||
(RMB in millions) | (%) | |||||||||||
Operating revenues | 2,827,566 | 2,020,375 | (28.5 | ) | ||||||||
Sales of goods | 2,783,265 | 1,977,877 | (28.9 | ) | ||||||||
Other operating revenues | 44,301 | 42,498 | (4.1 | ) | ||||||||
Operating expenses | (2,754,127 | ) | (1,963,553 | ) | (28.7 | ) | ||||||
Purchased crude oil, products and operating supplies and expenses | (2,335,530 | ) | (1,494,046 | ) | (36.0 | ) | ||||||
Selling, general and administrative expenses | (68,543 | ) | (69,491 | ) | 1.4 | |||||||
Depreciation, depletion and amortization | (90,196 | ) | (96,460 | ) | 6.9 | |||||||
Exploration expenses, including dry holes | (10,969 | ) | (10,459 | ) | (4.6 | ) | ||||||
Personnel expenses | (57,525 | ) | (56,619 | ) | (1.6 | ) | ||||||
Taxes other than income tax | (191,208 | ) | (236,349 | ) | 23.6 | |||||||
Other operating (expenses)/income, net | (156 | ) | (129 | ) | (17.3 | ) | ||||||
Operating income | 73,439 | 56,822 | (22.6 | ) | ||||||||
Net finance costs | (14,190 | ) | (9,239 | ) | (34.9 | ) | ||||||
Investment income and income from associates and jointly controlled entities | 6,569 | 8,828 | 34.4 | |||||||||
Earnings before income tax | 65,818 | 56,411 | (14.3 | ) | ||||||||
Tax expense | (17,571 | ) | (12,613 | ) | (28.2 | ) | ||||||
Net income | 48,247 | 43,798 | (9.2 | ) | ||||||||
Attributable to: | ||||||||||||
Equity shareholders of the Company | 46,639 | 32,512 | (30.3 | ) | ||||||||
Non-controlling interests | 1,608 | 11,286 | 601.9 |
Year Ended December 31, | Change from 2012 to 2013 | |||||||||||
2013 | 2012 | |||||||||||
(RMB in millions) | % | |||||||||||
Operating revenues | 2,880,311 | 2,786,045 | 3.4 | |||||||||
Sales of goods | 2,833,247 | 2,733,618 | 3.6 | |||||||||
Other operating revenues | 47,064 | 52,427 | (10.2 | ) | ||||||||
Operating expenses | (2,783,526 | ) | (2,687,383 | ) | 3.6 | |||||||
Purchased crude oil, products and operating supplies and expenses | (2,371,858 | ) | (2,301,199 | ) | 3.1 | |||||||
Selling, general and administrative expenses | (69,928 | ) | (61,174 | ) | 14.3 | |||||||
Depreciation, depletion and amortization | (81,265 | ) | (70,456 | ) | 15.3 | |||||||
Exploration expenses, including dry holes | (12,573 | ) | (15,533 | ) | (19.1 | ) | ||||||
Personnel expenses | (55,353 | ) | (51,767 | ) | 6.9 | |||||||
Taxes other than income tax | (190,672 | ) | (188,483 | ) | 1.2 | |||||||
Other operating (expenses)/income, net | (1,877 | ) | 1,229 | - | ||||||||
Operating income | 96,785 | 98,662 | (1.9 | ) | ||||||||
Net finance costs | (4,246 | ) | (9,881 | ) | (57.0 | ) | ||||||
Investment income and income from associates and jointly controlled entities | 2,513 | 1,861 | 35.0 | |||||||||
Earnings before income tax | 95,052 | 90,642 | 4.9 | |||||||||
Tax expense | (24,763 | ) | (23,846 | ) | 3.8 | |||||||
Net income | 70,289 | 66,796 | 5.2 | |||||||||
Attributable to: | ||||||||||||
Equity shareholders of the Company | 66,132 | 63,879 | 3.5 | |||||||||
Non-controlling interests | 4,157 | 2,917 | 42.5 | |||||||||
Sales Volume | Average Realized Price | |||||||||||||||||||||||
2014 | 2015 | Change from 2014 to 2015 | 2014 | 2015 | Change from 2014 to 2015 | |||||||||||||||||||
(thousand tonnes) | (%) | (RMB per tonne) | (%) | |||||||||||||||||||||
Crude oil | 8,864 | 9,674 | 9.1 | 4,008 | 2,019 | (49.6 | ) | |||||||||||||||||
Domestic | 8,780 | 9,674 | 10.2 | 4,001 | 2,019 | (49.5 | ) | |||||||||||||||||
Oversea | 84 | - | - | 4,691 | - | - | ||||||||||||||||||
Natural gas | 16,661 | (1) | 18,440 | (1) | 10.7 | 1,589 | (2) | 1,519 | (2) | (4.4 | ) | |||||||||||||
Gasoline | 64,083 | 69,749 | 8.8 | 8,339 | 6,749 | (19.1 | ) | |||||||||||||||||
Diesel | 102,724 | 95,472 | (7.1 | ) | 6,647 | 4,937 | (25.7 | ) | ||||||||||||||||
Kerosene | 21,845 | 23,028 | 5.4 | 5,710 | 3,387 | (40.7 | ) | |||||||||||||||||
Basic chemical feedstock | 27,277 | 29,608 | 8.5 | 6,151 | 4,175 | (32.1 | ) | |||||||||||||||||
Synthetic fiber monomer and polymer | 6,479 | 6,071 | (6.3 | ) | 7,223 | 5,796 | (19.8 | ) |
Sales Volume | Change from 2012 to 2013 | Average Realized Price | Change from 2012 to 2013 | |||||||||||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||||||||||
(thousand tonnes) | (%) | (RMB per tonne) | (%) | |||||||||||||||||||||
Crude oil | 7,604 | 6,221 | 22.2 | 4,253 | 4,579 | (7.1 | ) | |||||||||||||||||
Natural gas | 15,907 | (1) | 14,431 | (1) | 10.2 | 1,336 | (2) | 1,281 | (2) | 4.3 | ||||||||||||||
Gasoline | 59,482 | 53,488 | 11.2 | 8,498 | 8,615 | (1.4 | ) | |||||||||||||||||
Diesel | 99,855 | 99,864 | 0.0 | 7,050 | 7,219 | (2.3 | ) | |||||||||||||||||
Kerosene | 20,162 | 18,760 | 7.5 | 6,116 | 6,416 | (4.7 | ) | |||||||||||||||||
Basic chemical feedstock | 25,838 | 23,387 | 10.5 | 6,870 | 6,740 | 1.9 | ||||||||||||||||||
Synthetic fiber monomer and polymer | 6,856 | 6,943 | (1.3 | ) | 8,167 | 8,238 | (0.9 | ) | ||||||||||||||||
Synthetic resin | 10,696 | 10,503 | 1.8 | 9,631 | 9,181 | 4.9 | ||||||||||||||||||
Synthetic fiber | 1,488 | 1,458 | 2.1 | 10,356 | 10,790 | (4.0 | ) | |||||||||||||||||
Synthetic rubber | 1,346 | 1,287 | 4.6 | 12,214 | 17,564 | (30.5 | ) | |||||||||||||||||
Chemical fertilizer | 1,129 | 1,193 | (5.4 | ) | 1,698 | 2,052 | (17.3 | ) |
Sales Volume | Average Realized Price | |||||||||||||||||||||||
2014 | 2015 | Change from 2014 to 2015 | 2014 | 2015 | Change from 2014 to 2015 | |||||||||||||||||||
(thousand tonnes) | (%) | (RMB per tonne) | (%) | |||||||||||||||||||||
Synthetic resin | 11,584 | 11,989 | 3.5 | 9,684 | 7,771 | (19.8 | ) | |||||||||||||||||
Synthetic fiber | 1,430 | 1,380 | (3.5 | ) | 9,436 | 7,740 | (18.0 | ) | ||||||||||||||||
Synthetic rubber | 1,205 | 1,104 | (8.4 | ) | 10,554 | 8,778 | (16.8 | ) | ||||||||||||||||
Chemcial Fertilizer | 598 | 243 | (59.4 | ) | 1,686 | 1,823 | 8.1 |
(1) | million cubic meters |
(2) | RMB per thousand cubic meters |
· | crude oil purchase expenses were RMB |
· | other purchasing expenses were RMB |
C. DISCUSSIONS ON RESULTS OF SEGMENT OPERATIONS |
Year Ended December 31, | As a Percentage of Consolidated Operating Revenues Before Elimination of Inter-segment Sales | As a Percentage of Consolidated Operating Revenues After Elimination of Inter-segment Sales | ||||||||||||||||||||||||||
2012 | 2013 | 2014 | 2013 | 2014 | 2013 | 2014 | ||||||||||||||||||||||
(RMB in billions) | (%) | (%) | (%) | (%) | ||||||||||||||||||||||||
Exploration and production | ||||||||||||||||||||||||||||
External sales(1) | 82 | 83 | 86 | 1.7 | 1.8 | 2.9 | 3.0 | |||||||||||||||||||||
Inter-segment sales | 175 | 159 | 142 | 3.3 | 3.0 | |||||||||||||||||||||||
Total operating revenue | 257 | 242 | 228 | 5.0 | 4.8 | |||||||||||||||||||||||
Refining | ||||||||||||||||||||||||||||
External sales(1) | 200 | 200 | 181 | 4.1 | 3.8 | 7.0 | 6.4 | |||||||||||||||||||||
Inter-segment sales | 1,071 | 1,111 | 1,092 | 22.9 | 23.2 | |||||||||||||||||||||||
Total operating revenue | 1,271 | 1,311 | 1,273 | 27.0 | 27.0 | |||||||||||||||||||||||
Marketing and distribution | ||||||||||||||||||||||||||||
External sales(1) | 1,462 | 1,496 | 1,471 | 30.8 | 31.2 | 51.9 | 52.1 | |||||||||||||||||||||
Inter-segment sales | 10 | 6 | 6 | 0.1 | 0.1 | |||||||||||||||||||||||
Total operating revenue | 1,472 | 1,502 | 1,477 | 30.9 | 31.3 | |||||||||||||||||||||||
Chemicals | ||||||||||||||||||||||||||||
External sales(1) | 364 | 382 | 365 | 7.9 | 7.7 | 13.2 | 12.9 | |||||||||||||||||||||
Inter-segment sales | 48 | 56 | 62 | 1.2 | 1.3 | |||||||||||||||||||||||
Total operating revenue | 412 | 438 | 427 | 9.1 | 9.0 | |||||||||||||||||||||||
Corporate and others | ||||||||||||||||||||||||||||
External sales(1) | 678 | 719 | 723 | 14.8 | 15.3 | 25.0 | 25.6 | |||||||||||||||||||||
Inter-segment sales | 635 | 640 | 587 | 13.2 | 12.5 | |||||||||||||||||||||||
Total operating revenue | 1,313 | 1,359 | 1,310 | 28.0 | 27.8 | |||||||||||||||||||||||
Total operating revenue before inter-segment eliminations | 4,725 | 4,852 | 4,715 | 100.0 | 100.0 | |||||||||||||||||||||||
Elimination of inter-segment sales | (1,939 | ) | (1,972 | ) | (1,889 | ) | ||||||||||||||||||||||
Consolidated operating revenues | 2,786 | 2,880 | 2,826 | 100.0 | 100.0 | |||||||||||||||||||||||
Year Ended December 31, | Change from | |||||||||||||||
2014 | 2015 | 2016 | 2015 to 2016 | |||||||||||||
(RMB in billions) | (%) | |||||||||||||||
Exploration and production | ||||||||||||||||
Total operating revenues | 228 | 139 | 116 | (16.5 | ) | |||||||||||
Total operating expenses | (181 | ) | (156 | ) | (153 | ) | (1.9 | ) | ||||||||
Total operating income/(loss) | 47 | (17 | ) | (37 | ) | 117.6 | ||||||||||
Refining | ||||||||||||||||
Total operating revenues | 1,273 | 927 | 856 | (7.7 | ) | |||||||||||
Total operating expenses | (1,275 | ) | (906 | ) | (800 | ) | (11.7 | ) |
Year Ended December 31, | Change from 2013 to 2014 | Year Ended December 31, | Change from | |||||||||||||||||||||||||||||
2012 | 2013 | 2014 | 2014 | 2015 | 2016 | 2015 to 2016 | ||||||||||||||||||||||||||
(RMB in billions) | (%) | (RMB in billions) | (%) | |||||||||||||||||||||||||||||
Exploration and production | ||||||||||||||||||||||||||||||||
Total operating revenues | 257 | 242 | 228 | (5.8 | ) | |||||||||||||||||||||||||||
Total operating expenses | (187 | ) | (187 | ) | (181 | ) | (3.2 | ) | ||||||||||||||||||||||||
Total operating income | 70 | 55 | 47 | (14.5 | ) | |||||||||||||||||||||||||||
Refining | ||||||||||||||||||||||||||||||||
Total operating (loss)/income | (2 | ) | 21 | 56 | 166.7 | |||||||||||||||||||||||||||
Marketing and distribution | ||||||||||||||||||||||||||||||||
Total operating revenues | 1,271 | 1,311 | 1,273 | (2.9 | ) | 1,477 | 1,107 | 1,053 | (4.9 | ) | ||||||||||||||||||||||
Total operating expenses | (1,282 | ) | (1,302 | ) | (1,275 | ) | (2.1 | ) | (1,448 | ) | (1,078 | ) | (1,021 | ) | (5.3 | ) | ||||||||||||||||
Total operating income/(loss) | (11 | ) | 9 | (2 | ) | - | 29 | 29 | 32 | 10.3 | ||||||||||||||||||||||
Marketing and distribution | ||||||||||||||||||||||||||||||||
Total operating revenues | 1,472 | 1,502 | 1,477 | (1.7 | ) | |||||||||||||||||||||||||||
Total operating expenses | (1,429 | ) | (1,467 | ) | (1,448 | ) | (1.3 | ) | ||||||||||||||||||||||||
Total operating income | 43 | 35 | 29 | (17.1 | ) | |||||||||||||||||||||||||||
Chemicals | ||||||||||||||||||||||||||||||||
Total operating revenues | 412 | 438 | 427 | (2.5 | ) | 431 | 329 | 335 | 1.8 | |||||||||||||||||||||||
Total operating expenses | (411 | ) | (437 | ) | (429 | ) | (1.8 | ) | (433 | ) | (309 | ) | (314 | ) | 1.6 | |||||||||||||||||
Total operating income | 1 | 1 | (2 | ) | - | |||||||||||||||||||||||||||
Total operating (loss)/income | (2 | ) | 20 | 21 | 5.0 | |||||||||||||||||||||||||||
Corporate and others | ||||||||||||||||||||||||||||||||
Total operating revenues | 1,313 | 1,359 | 1,310 | (3.6 | ) | 1,310 | 784 | 740 | (5.6 | ) | ||||||||||||||||||||||
Total operating expenses | (1,315 | ) | (1,362 | ) | (1,311 | ) | (3.7 | ) | (1,311 | ) | (784 | ) | (737 | ) | (6.0 | ) | ||||||||||||||||
Total operating loss | (2 | ) | (3 | ) | (1 | ) | (66.7 | ) | ||||||||||||||||||||||||
Elimination of inter-segment income (loss) | (1 | ) | 1 | 2 | - | |||||||||||||||||||||||||||
Total operating (loss)/income | (1 | ) | 0 | 3 | N/A | |||||||||||||||||||||||||||
Elimination of inter-segment income | 2 | 5 | 2 |
· |
· | Impairment of oil and gas assets increased by RMB 6.7 billion, as a result of downward revision of oil and gas reserve due to price decrease and high operating and development cost for certain oil fields; and |
· | other expenses (net) decreased by RMB 20.6 billion, as a result of the restructuring of Sichuan-to-East China Pipeline Co. |
· | Special oil income levy and resources tax dropped by RMB 25.9 billion owing to the decline of crude oil price; |
· |
· |
Sales volume | Change from2013 to 2014 | Average realized prices | Change from 2013 to 2014 | |||||||||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||||||||||
(thousand tonnes) | (%) | (RMB per tonne) | (%) | |||||||||||||||||||||
Gasoline | 47,786 | 42,759 | 11.8 | 7,784 | 7,879 | (1.2 | ) | |||||||||||||||||
Diesel | 67,945 | 72,402 | (6.2 | ) | 6,288 | 6,571 | (4.3 | ) | ||||||||||||||||
Kerosene | 12,410 | 11,944 | 3.9 | 5,705 | 6,116 | (6.7 | ) | |||||||||||||||||
Chemical feedstock | 37,690 | 36,353 | 3.7 | 5,333 | 5,722 | (6.8 | ) | |||||||||||||||||
Other refined petroleum products | 49,901 | 51,207 | (2.6 | ) | 3,943 | 4,136 | (4.7 | ) |
Sales volume | Change from | Average realized prices | Change from | |||||||||||||||||||||
2015 | 2016 | 2015 to 2016 | 2015 | 2016 | 2015 to 2016 | |||||||||||||||||||
(thousand tonnes) | (%) | (RMB per tonne) | (%) | |||||||||||||||||||||
Gasoline | 50,921 | 52,461 | 3.0 | 6,191 | 5,904 | (4.6 | ) | |||||||||||||||||
Diesel | 63,359 | 58,734 | (7.3 | ) | 4,797 | 4,505 | (6.1 | ) | ||||||||||||||||
Kerosene | 13,518 | 14,529 | 7.5 | 3,420 | 2,814 | (17.7 | ) | |||||||||||||||||
Chemical feedstock | 35,945 | 36,408 | 1.3 | 2,984 | 2,584 | (13.4 | ) | |||||||||||||||||
Other refined oil products | 52,418 | 55,742 | 6.3 | 2,842 | 2,529 | (11.0 | ) |
Sales volume | Change from 2012 to 2013 | Average realized prices | Change from 2012 to 2013 | |||||||||||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||||||||||
(thousand tonnes) | (%) | (RMB per tonne) | (%) | |||||||||||||||||||||
Gasoline | 42,759 | 38,473 | 11.1 | 7,879 | 7,957 | (1.0 | ) | |||||||||||||||||
Diesel | 72,402 | 72,883 | (0.7 | ) | 6,571 | 6,682 | (1.7 | ) | ||||||||||||||||
Kerosene | 11,944 | 10,262 | 16.4 | 6,116 | 6,379 | (4.1 | ) | |||||||||||||||||
Chemical feedstock | 36,353 | 34,431 | 5.6 | 5,722 | 5,983 | (4.4 | ) | |||||||||||||||||
Other refined petroleum products | 51,207 | 46,932 | 9.1 | 4,136 | 4,267 | (3.1 | ) |
Sales volume | Change from | Average realized prices | Change from | |||||||||||||||||||||
2014 | 2015 | 2014 to 2015 | 2014 | 2015 | 2014 to 2015 | |||||||||||||||||||
(thousand tonnes) | (%) | (RMB per tonne) | (%) | |||||||||||||||||||||
Gasoline | 47,786 | 50,921 | 6.6 | 7,784 | 6,191 | (20.5 | ) | |||||||||||||||||
Diesel | 67,945 | 63,359 | (6.7 | ) | 6,288 | 4,797 | (23.7 | ) | ||||||||||||||||
Kerosene | 12,410 | 13,518 | 8.9 | 5,705 | 3,420 | (40.1 | ) | |||||||||||||||||
Chemical feedstock | 37,690 | 35,945 | (4.6 | ) | 5,333 | 2,984 | (44.1 | ) | ||||||||||||||||
Other refined oil products | 49,901 | 52,418 | 5.0 | 3,943 | 2,842 | (27.9 | ) |
Sales Volume | Change from 2013 to 2014 | Average Realized Prices | Change from 2013 to 2014 | Sales Volume | Change from | Average Realized Prices | Change from | |||||||||||||||||||||||||||||||||||||||||
2014 | 2013 | 2014 | 2013 | 2015 | 2016 | 2015 to 2016 | 2015 | 2016 | 2015 to 2016 | |||||||||||||||||||||||||||||||||||||||
(thousand tonnes) | (%) | (RMB per tonne) | (%) | (thousand tonnes) | (%) | (RMB per tonne) | (%) | |||||||||||||||||||||||||||||||||||||||||
Gasoline | 64,190 | 59,523 | 7.8 | 8,338 | 8,498 | (1.9 | ) | 69,842 | 77,613 | 11.1 | 6,747 | 6,380 | (5.4 | ) | ||||||||||||||||||||||||||||||||||
Retail sale | 53,003 | 49,733 | 6.6 | 8,585 | 8,690 | (1.2 | ) | 58,211 | 63,718 | 9.5 | 6,996 | 6,722 | (3.9 | ) | ||||||||||||||||||||||||||||||||||
Wholesale and distribution | 11,187 | 9,791 | 14.3 | 7,166 | 7,524 | (4.8 | ) | 11,631 | 13,895 | 19.5 | 5,498 | 4,812 | (12.5 | ) | ||||||||||||||||||||||||||||||||||
Diesel | 103,255 | 100,477 | 2.8 | 6,648 | 7,049 | (5.7 | ) | 95,907 | 91,998 | (4.1 | ) | 4,936 | 4,478 | (9.3 | ) | |||||||||||||||||||||||||||||||||
Retail sale | 55,934 | 58,148 | (3.8 | ) | 7,029 | 7,325 | (4.0 | ) | 50,756 | 46,656 | (8.1 | ) | 5,490 | 5,088 | (7.3 | ) | ||||||||||||||||||||||||||||||||
Wholesale and distribution | 47,322 | 42,328 | 11.8 | 6,196 | 6,671 | (7.1 | ) | 45,151 | 45,342 | 0.4 | 4,314 | 3,851 | (10.7 | ) | ||||||||||||||||||||||||||||||||||
Kerosene | 21,845 | 20,232 | 8.0 | 5,710 | 6,116 | (6.6 | ) | 23,028 | 25,164 | 9.3 | 3,387 | 2,807 | (17.1 | ) | ||||||||||||||||||||||||||||||||||
Fuel oil | 25,537 | 33,100 | (22.8 | ) | 4,016 | 4,333 | (7.3 | ) | 24,980 | 22,034 | (11.8 | ) | 2,215 | 1,703 | (23.1 | ) |
Sales Volume | Change from2012 to 2013 | Average Realized Prices | Change from 2012 to 2013 | Sales Volume | Change from | Average Realized Prices | Change from | |||||||||||||||||||||||||||||||||||||||||
2013 | 2012 | 2013 | 2012 | 2014 | 2015 | 2014 to 2015 | 2014 | 2015 | 2014 to 2015 | |||||||||||||||||||||||||||||||||||||||
(thousand tonnes) | (%) | (RMB per tonne) | (%) | (thousand tonnes) | (%) | (RMB per tonne) | (%) | |||||||||||||||||||||||||||||||||||||||||
Gasoline | 59,523 | 53,535 | 11.2 | 8,498 | 8,614 | (1.4 | ) | 64,190 | 69,842 | 8.8 | 8,338 | 6,747 | (19.1 | ) | ||||||||||||||||||||||||||||||||||
Retail sale | 49,733 | 45,477 | 9.4 | 8,690 | 8,744 | (0.6 | ) | 53,003 | 58,211 | 9.8 | 8,585 | 6,996 | (18.5 | ) | ||||||||||||||||||||||||||||||||||
Wholesale and distribution | 9,791 | 8,058 | 21.5 | 7,524 | 7,881 | (4.5 | ) | 11,187 | 11,631 | 4.0 | 7,166 | 5,498 | (23.3 | ) | ||||||||||||||||||||||||||||||||||
Diesel | 100,477 | 100,790 | (0.3 | ) | 7,049 | 7,213 | (2.3 | ) | 103,255 | 95,907 | (7.1 | ) | 6,648 | 4,936 | (25.7 | ) | ||||||||||||||||||||||||||||||||
Retail sale | 58,148 | 57,382 | 1.3 | 7,325 | 7,454 | (1.7 | ) | 55,934 | 50,756 | (9.3 | ) | 7,029 | 5,490 | (21.9 | ) | |||||||||||||||||||||||||||||||||
Wholesale and distribution | 42,328 | 43,408 | (2.5 | ) | 6,671 | 6,895 | (3.2 | ) | 47,322 | 45,151 | (4.6 | ) | 6,196 | 4,314 | (30.4 | ) | ||||||||||||||||||||||||||||||||
Kerosene | 20,232 | 18,741 | 8.0 | 6,116 | 6,416 | (4.7 | ) | 21,845 | 23,028 | 5.4 | 5,710 | 3,387 | (40.7 | ) | ||||||||||||||||||||||||||||||||||
Fuel oil | 33,100 | 29,690 | 11.5 | 4,333 | 4,622 | (6.3 | ) | 25,537 | 24,980 | (2.2 | ) | 4,016 | 2,215 | (44.8 | ) |
Sales Volume | Change from | Average Realized Prices | Change from | |||||||||||||||||||||
2015 | 2016 | 2015 to 2016 | 2015 | 2016 | 2015 to 2016 | |||||||||||||||||||
(thousand tonnes) | (%) | (RMB per tonne) | (%) | |||||||||||||||||||||
Basic organic chemicals | 38,903 | 41,605 | 6.9 | 4,121 | 3,963 | (3.8 | ) |
Sales Volume | Change from 2013 to 2014 | Average Realized Prices | Change from 2013 to 2014 | |||||||||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||||||||||
(thousand tonnes) | (%) | (RMB per tonne) | (%) | |||||||||||||||||||||
Basic organic chemicals | 35,788 | 32,971 | 8.5 | 6,118 | 6,764 | (9.6 | ) | |||||||||||||||||
Synthetic fiber monomers and polymers | 6,496 | 6,883 | (5.6 | ) | 7,220 | 8,161 | (11.5 | ) | ||||||||||||||||
Synthetic resins | 11,603 | 10,700 | 8.4 | 9,679 | 9,631 | 0.5 | ||||||||||||||||||
Synthetic fiber | 1,430 | 1,488 | (3.9 | ) | 9,436 | 10,356 | (8.9 | ) | ||||||||||||||||
Synthetic rubber | 1,207 | 1,349 | (10.5 | ) | 10,549 | 12,203 | (13.6 | ) | ||||||||||||||||
Chemical fertilizer | 598 | 1,129 | (47.0 | ) | 1,686 | 1,698 | (0.7 | ) |
Sales Volume | Change from | Average Realized Prices | Change from | |||||||||||||||||||||
2015 | 2016 | 2015 to 2016 | 2015 | 2016 | 2015 to 2016 | |||||||||||||||||||
(thousand tonnes) | (%) | (RMB per tonne) | (%) | |||||||||||||||||||||
Synthetic fiber monomers and polymers | 6,083 | 7,169 | 17.9 | 5,797 | 5,328 | (8.1 | ) | |||||||||||||||||
Synthetic resins | 11,993 | 12,250 | 2.1 | 7,771 | 7,482 | (3.7 | ) | |||||||||||||||||
Synthetic fiber | 1,380 | 1,369 | (0.8 | ) | 7,739 | 7,113 | (8.1 | ) | ||||||||||||||||
Synthetic rubber | 1,107 | 1,099 | (0.7 | ) | 8,769 | 9,609 | 9.6 | |||||||||||||||||
Chemical fertilizer | 243 | 714 | 193.8 | 1,823 | 1,612 | (11.6 | ) |
Sales Volume | Change from 2012 to 2013 | Average Realized Prices | Change from 2012 to 2013 | |||||||||||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||||||||||
(thousand tonnes) | (%) | (RMB per tonne) | (%) | |||||||||||||||||||||
Basic organic chemicals | 32,971 | 29,873 | 10.4 | 6,764 | 6,667 | 1.5 | ||||||||||||||||||
Synthetic fiber monomers and polymers | 6,883 | 6,972 | (1.3 | ) | 8,161 | 8,231 | (0.9 | ) | ||||||||||||||||
Synthetic resins | 10,700 | 10,507 | 1.8 | 9,631 | 9,182 | 4.9 | ||||||||||||||||||
Synthetic fiber | 1,488 | 1,458 | 2.1 | 10,356 | 10,790 | (4.0 | ) | |||||||||||||||||
Synthetic rubber | 1,349 | 1,289 | 4.7 | 12,203 | 17,553 | (30.5 | ) | |||||||||||||||||
Chemical fertilizer | 1,129 | 1,232 | (8.4 | ) | 1,698 | 2,044 | (16.9 | ) |
Sales Volume | Change from | Average Realized Prices | Change from | |||||||||||||||||||||
2014 | 2015 | 2014 to 2015 | 2014 | 2015 | 2014 to 2015 | |||||||||||||||||||
(thousand tonnes) | (%) | (RMB per tonne) | (%) | |||||||||||||||||||||
Basic organic chemicals | 35,788 | 38,903 | 8.7 | 6,118 | 4,121 | (32.6 | ) | |||||||||||||||||
Synthetic fiber monomers and polymers | 6,496 | 6,083 | (6.4 | ) | 7,220 | 5,797 | (19.7 | ) | ||||||||||||||||
Synthetic resins | 11,603 | 11,993 | 3.4 | 9,679 | 7,771 | (19.7 | ) | |||||||||||||||||
Synthetic fiber | 1,430 | 1,380 | (3.5 | ) | 9,436 | 7,739 | (18.0 | ) | ||||||||||||||||
Synthetic rubber | 1,207 | 1,107 | (8.3 | ) | 10,549 | 8,769 | (16.9 | ) | ||||||||||||||||
Chemical fertilizer | 598 | 243 | (59.4 | ) | 1,686 | 1,823 | 8.1 |
D. LIQUIDITY AND CAPITAL RESOURCES |
Year Ended December 31, | ||||||||||||
Statement of cash flow data | 2014 | 2015 | 2016 | |||||||||
(RMB in millions) | ||||||||||||
Net cash generated from operating activities | 148,019 | 165,740 | 214,543 | |||||||||
Net cash used in investing activities | (132,321 | ) | (116,719 | ) | (66,217 | ) | ||||||
Net cash (used in)/generated from financing activities | (21,524 | ) | 9,093 | (93,047 | ) | |||||||
Net (decrease)/increase in cash and cash equivalents | (5,826 | ) | 58,114 | 55,279 |
Year Ended December 31, | ||||||||||||
Statement of cash flow data | 2014 | 2013 | 2012 | |||||||||
(RMB in millions) | ||||||||||||
Net cash generated from operating activities | 148,347 | 151,893 | 142,380 | |||||||||
Net cash used in investing activities | (132,633 | ) | (178,740 | ) | (162,197 | ) | ||||||
Net cash used/generated from financing activities | (21,421 | ) | 31,519 | 5,628 | ||||||||
Net decrease/increase in cash and cash equivalents | (5,707 | ) | 4,672 | (14,189 | ) |
As of December 31, 2016 | ||||||||||||||||||||
Total | less than 1 year | 1-3 years | 4-5 years | After 5 years | ||||||||||||||||
(RMB in millions) | ||||||||||||||||||||
Contractual obligations(1) | ||||||||||||||||||||
Short-term debt | 76,145 | 76,145 | ||||||||||||||||||
Long-term debt | 130,069 | 2,832 | 44,416 | 58,284 | 24,537 | |||||||||||||||
Total contractual obligations | 206,214 | 78,977 | 44,416 | 58,284 | 24,537 | |||||||||||||||
Other commercial commitments | ||||||||||||||||||||
Operating lease commitments | 344,878 | 14,917 | 28,194 | 26,197 | 275,570 | |||||||||||||||
Capital commitments | 148,099 | 148,099 | ||||||||||||||||||
Exploration and production licenses | 1,327 | 263 | 148 | 49 | 867 | |||||||||||||||
Guarantees(2) | 22,872 | 22,872 | ||||||||||||||||||
Total commercial commitments | 517,176 | 186,151 | 28,342 | 26,246 | 276,437 | |||||||||||||||
As of December 31, 2014 | ||||||||||||||||||||
Total | less than 1 year | 1-3 years | 4-5 years | After 5 years | ||||||||||||||||
(RMB in millions) | ||||||||||||||||||||
Contractual obligations(1) | ||||||||||||||||||||
Short-term debt | 179,437 | 179,437 | - | - | - | |||||||||||||||
Long-term debt | 173,957 | 4,590 | 54,905 | 32,662 | 81,800 | |||||||||||||||
Total contractual obligations | 353,394 | 184,027 | 54,905 | 32,662 | 81,800 | |||||||||||||||
Other commercial commitments | ||||||||||||||||||||
Operating lease commitments | 363,974 | 13,909 | 26,593 | 26,047 | 297,425 | |||||||||||||||
Capital commitments | 241,181 | 138,795 | 102,386 | - | - | |||||||||||||||
Exploration and production licenses | 1,356 | 312 | 192 | 41 | 811 | |||||||||||||||
Guarantees(2) | 5,720 | 5,720 | - | - | - | |||||||||||||||
Total commercial commitments | 612,231 | 158,736 | 129,171 | 26,088 | 298,236 | |||||||||||||||
(1) | Contractual obligations include the contractual obligations relating to interest payments. |
(2) | Guarantee is not limited by time, therefore specific payment due period is not applicable. As of December 31, |
2012 | 2013 | 2014 | Total | |||||||||||||||||||||||||||||
RMB | Percent | RMB | Percent | RMB | Percent | RMB | Percent | |||||||||||||||||||||||||
(in billions, except percentage data) | ||||||||||||||||||||||||||||||||
Exploration and production | 79.07 | 46.80 | % | 105.31 | 56.88 | % | 80.20 | 51.86 | % | 264.58 | 52.01 | % | ||||||||||||||||||||
Refining | 32.16 | 19.03 | % | 26.06 | 14.08 | % | 27.96 | 18.08 | % | 86.18 | 16.94 | % | ||||||||||||||||||||
Marketing and distribution | 31.72 | 18.77 | % | 29.49 | 15.93 | % | 26.99 | 17.45 | % | 88.20 | 17.33 | % | ||||||||||||||||||||
Chemicals | �� | 23.62 | 13.98 | % | 19.19 | 10.37 | % | 15.85 | 10.25 | % | 58.66 | 11.53 | % | |||||||||||||||||||
Corporate and others | 2.40 | 1.42 | % | 5.08 | 2.74 | % | 3.65 | 2.36 | % | 11.13 | 2.19 | % | ||||||||||||||||||||
Capital Expenditure | 168.97 | 100.00 | % | 185.13 | 100.00 | % | 154.64 | 100.00 | % | 508.74 | 100.00 | % | ||||||||||||||||||||
2014 | 2015 | 2016 | Total | |||||||||||||||||||||||||||||
RMB | Percent | RMB | Percent | RMB | Percent | RMB | Percent | |||||||||||||||||||||||||
(in billions, except percentage data) | ||||||||||||||||||||||||||||||||
Exploration and production | 80.20 | 51.83 | % | 54.71 | 48.67 | % | 32.19 | 42.10 | % | 167.10 | 48.63 | % | ||||||||||||||||||||
Refining | 27.96 | 18.07 | % | 15.13 | 13.46 | % | 14.35 | 18.77 | % | 57.44 | 16.72 | % | ||||||||||||||||||||
Marketing and distribution | 26.99 | 17.44 | % | 22.12 | 19.68 | % | 18.49 | 24.18 | % | 67.60 | 19.68 | % | ||||||||||||||||||||
Chemicals | 15.93 | 10.30 | % | 17.63 | 15.68 | % | 8.85 | 11.58 | % | 42.41 | 12.34 | % | ||||||||||||||||||||
Corporate and others | 3.65 | 2.36 | % | 2.82 | 2.51 | % | 2.58 | 3.37 | % | 9.05 | 2.63 | % | ||||||||||||||||||||
Capital Expenditure | 154.73 | 100.00 | % | 112.41 | 100.00 | % | 76.46 | 100.00 | % | 343.60 | 100.00 | % | ||||||||||||||||||||
· | Exploration and production. RMB |
· | Refining. RMB |
· | Marketing and distribution. RMB |
· | Chemicals. RMB |
· | Corporate and others. RMB |
· | Exploration and |
· |
· | Marketing and distribution. The planned capital expenditure in |
· | Chemicals. The planned capital expenditure in |
· | Corporate and others. The planned capital expenditure in |
ITEM 6. | DIRECTORS, SENIOR MANAGEMENT AND EMPLOYEES |
A. DIRECTORS, SUPERVISORS AND SENIOR MANAGEMENT |
Name | Age | Positions with Sinopec Corp. | ||
60 | Chairman | |||
53 | Vice Chairman, | |||
59 | Director, Senior Vice President | |||
59 | Director, Senior Vice President | |||
54 | Director, Senior Vice President | |||
55 | Director, | |||
Jiang Xiaoming | 63 | Independent | ||
Andrew Y. Yan | 59 | Independent | ||
Tang Min | 63 | Independent | ||
62 | Independent Director |
Name | Age | Position with the Company | ||
53 | Supervisor | |||
53 | Supervisor | |||
Zou Huiping | 56 | |||
Jiang Zhenying | 52 | Employee Representative Supervisor | ||
Yu Renming | 53 | |||
Wang Yajun | 60 | Employee Representative Supervisor |
Name | Age | Positions with Sinopec Corp. | |||
Wang | 50 | ||||
55 | Vice President | ||||
Ling Yiqun | 54 | Vice President | |||
50 | |||||
Chang Zhenyong | 58 | Vice President | |||
Lei Dianwu | 54 | Vice President |
Name | Position with the Company | Remuneration paid by the Company in | ||
(RMB in | ||||
Directors | ||||
Chairman | ||||
Vice Chairman, | ||||
Wang Zhigang | Director, Senior Vice President | |||
Director, Senior Vice President | ||||
Director, Senior Vice President | ||||
Director, Senior Vice President | ||||
Jiang Xiaoming | Independent | |||
Andrew Y. Yan | Independent | |||
Independent | ||||
Fan Gang | Independent Director | 300 | ||
Supervisors | ||||
Supervisor | ||||
Supervisor | ||||
Zou Huiping | Supervisor | |||
Jiang Zhenying | Employee Representative Supervisor | |||
Yu Renming | Employee Representative Supervisor | |||
Wang Yajun | Employee Representative Supervisor | 596.6 |
Name | Position with the Company | Remuneration paid by the Company in 2016 | ||
Other Executive officers | ||||
CFO | 133.8 | |||
Jiang Zhenghong | Vice President | |||
Ling Yiqun | Vice President | |||
Huang Wensheng | Secretary of the Board of Directors/Vice President | |||
Chang Zhenyong | Vice President | 709.6 | ||
Lei Dianwu | Vice President | 709.6 |
C. BOARD PRACTICE |
· | to propose the appointment or replacement of the independent auditor; |
· | to oversee the internal auditing system and its implementation; |
· | to coordinate the communication between the internal auditing department and the independent auditor; |
· | to examine and approve financial information and it disclosure; and |
· | to examine the financial policies, internal auditing, internal control and risk management system. |
· | to |
· | to |
· |
· | to supervise directors and executive officers when they perform their duties, and to propose to our shareholders the dismissal of any director or executive officer who has violated our articles of association and relevant laws and regulation; |
· | to demand directors or executive officers to rectify their conducts that conflict with our interests; |
· | to propose the call of any extraordinary general meeting of shareholders to the Board, and to convene and preside over such shareholder meeting if the Board fails to do so; and |
· | to initiate legal proceedings against directors and executive officers on behalf of the Company. |
By Segment | Number of Employees | Percentage of Total Number of Employees (%) | ||||||
Exploration and production | 149,803 | 33 | ||||||
Refining | 72,473 | 16 | ||||||
Marketing and distribution | 153,924 | 34 | ||||||
Chemicals | 64,227 | 14 | ||||||
Corporate and other | 11,184 | 3 | ||||||
Total | 451,611 | 100 | ||||||
By Employee’s Scope of Work | Number of Employees | Percentage of Total Number of Employees (%) | ||||||
Production | 173,105 | 38 | ||||||
Sales | 139,079 | 31 | ||||||
Technical | 77,531 | 17 | ||||||
Finance | 16,555 | 4 | ||||||
Administration | 26,538 | 6 | ||||||
Others | 18,803 | 4 | ||||||
Total | 451,611 | 100 | ||||||
By Education | Number of Employees | Percentage of Total Number of Employees (%) | ||||||
Master’s degree and above | 15,210 | 3 | ||||||
University | 107,126 | 24 | ||||||
Junior college | 99,957 | 22 | ||||||
Technical secondary school | 41,079 | 9 | ||||||
Senior high school and technical school degree or below | 188,239 | 42 | ||||||
Total | 451,611 | 100 | ||||||
By Segment | Number of Employees | Percentage of Total Number of Employees (%) | ||
Exploration and production | 144,103 | 40 | ||
Refining | 78,725 | 22 | ||
Marketing and distribution | 57,256 | 16 | ||
Chemicals | 67,017 | 19 | ||
Corporate and others | 11,470 | 3 | ||
Total | 358,571 | 100 | ||
By Employee’s Scope of Work | Number of Employees | Percentage of Total Number of Employees (%) | ||
Production | 178,875 | 50 | ||
Sales | 49,670 | 14 | ||
Technical | 53,066 | 15 | ||
Finance | 9,628 | 2 | ||
Administration | 2,868 | 1 | ||
Others | 64,464 | 18 | ||
Total | 358,571 | 100 | ||
By Education | Number of Employees | Percentage of Total Number of Employees (%) | ||
Master’s degree and above | 13,919 | 4 | ||
University | 92,670 | 26 | ||
Junior college | 79,615 | 22 | ||
Technical secondary school | 27,399 | 8 | ||
Senior high school and technical school degree or below | 144,968 | 40 | ||
Total | 358,571 | 100 | ||
E. SHARE OWNERSHIP |
ITEM 7. | MAJOR SHAREHOLDERS AND RELATED PARTY TRANSACTIONS |
A. MAJOR SHAREHOLDERS |
Shareholder | Number of Shares Owned (in millions) | Percentage of Ownership (%) | ||||||
Sinopec Group Company(1). | 86,346 | 71.32 |
B. RELATED PARTY TRANSACTIONS |
C. INTERESTS OF EXPERTS AND COUNSEL |
ITEM 8. | FINANCIAL INFORMATION |
A. CONSOLIDATED STATEMENTS AND OTHER FINANCIAL INFORMATION |
ITEM 9. | THE OFFER AND LISTING |
A. OFFER AND LISTING DETAILS |
The Stock Exchange of Hong Kong | The New York Stock Exchange | The Shanghai Stock Exchange | The Stock Exchange of Hong Kong | The New York Stock Exchange | The Shanghai Stock Exchange | ||||||||||||||||||||||||||||||||||||
Period | Period | High | Low | High | Low | High | Low | Period | High | Low | High | Low | High | Low | |||||||||||||||||||||||||||
April 2015 (as of April 2, 2015) | 6.27 | 6.22 | 80.60 | 80.00 | 6.56 | 6.42 | |||||||||||||||||||||||||||||||||||
April 2017 (as of April 19, 2017) | April 2017 (as of April 19, 2017) | 6.55 | 5.98 | 84.50 | 76.66 | 5.99 | 5.56 | ||||||||||||||||||||||||||||||||||
Past 6 months | Past 6 months | (HK dollar per H share) | (US dollar per ADS) | (RMB per A share) | |||||||||||||||||||||||||||||||||||||
2017 | 2017 | March | 6.36 | 5.80 | 82.42 | 74.86 | 5.80 | 5.51 | |||||||||||||||||||||||||||||||||
2017 | 2017 | February | 6.22 | 6.00 | 80.41 | 77.49 | 6.03 | 5.73 | |||||||||||||||||||||||||||||||||
2017 | 2017 | January | 6.28 | 5.50 | 81.62 | 71.02 | 6.06 | 5.41 | |||||||||||||||||||||||||||||||||
2016 | 2016 | December | 5.81 | 5.46 | 74.36 | 70.86 | 5.67 | 5.27 | |||||||||||||||||||||||||||||||||
2016 | 2016 | November | 5.80 | 5.27 | 74.22 | 68.12 | 5.23 | 4.93 | |||||||||||||||||||||||||||||||||
2016 | 2016 | October | 5.95 | 5.65 | 77.47 | 72.42 | 5.07 | 4.86 | |||||||||||||||||||||||||||||||||
Past 6 months | (HK dollar per H share) | (US dollar per ADS) | (RMB per A share) | ||||||||||||||||||||||||||||||||||||||
2015 | March | 6.50 | 6.01 | 83.68 | 76.93 | 6.49 | 5.95 | ||||||||||||||||||||||||||||||||||
2015 | February | 6.53 | 6.07 | 83.80 | 78.41 | 6.32 | 5.68 | ||||||||||||||||||||||||||||||||||
2015 | January | 6.36 | 6.06 | 81.91 | 79.04 | 7.18 | 6.03 | ||||||||||||||||||||||||||||||||||
2014 | December | 6.59 | 5.93 | 85.60 | 76.12 | 6.56 | 5.41 | ||||||||||||||||||||||||||||||||||
2014 | November | 6.72 | 6.17 | 86.98 | 80.15 | 5.39 | 5.08 | ||||||||||||||||||||||||||||||||||
2014 | October | 6.80 | 6.51 | 87.79 | 84.26 | 5.30 | 5.02 | ||||||||||||||||||||||||||||||||||
Quarterly Data | Quarterly Data | ||||||||||||||||||||||||||||||||||||||||
2017 | 2017 | First Quarter | 6.36 | 5.50 | 82.42 | 71.92 | 6.06 | 5.51 | |||||||||||||||||||||||||||||||||
2016 | 2016 | Fourth Quarter | 5.95 | 5.27 | 77.47 | 68.12 | 5.67 | 4.86 | |||||||||||||||||||||||||||||||||
Third Quarter | 5.84 | 5.28 | 75.21 | 68.10 | 5.02 | 4.70 | |||||||||||||||||||||||||||||||||||
Second Quarter | 5.65 | 4.93 | 73.06 | 62.99 | 5.08 | 4.60 | |||||||||||||||||||||||||||||||||||
Quarterly Data | First Quarter | 5.09 | 3.88 | 65.15 | 49.82 | 4.96 | 4.27 | ||||||||||||||||||||||||||||||||||
2015 | First Quarter | 6.53 | 6.01 | 83.80 | 76.93 | 7.18 | 5.68 | 2015 | Fourth Quarter | 5.81 | 4.35 | 75.39 | 55.73 | 5.39 | 4.74 | ||||||||||||||||||||||||||
2014 | Fourth Quarter | 6.80 | 5.93 | 87.79 | 76.12 | 6.56 | 5.02 | ||||||||||||||||||||||||||||||||||
Third Quarter | 8.18 | 6.80 | 105.28 | 87.30 | 5.74 | 4.89 | |||||||||||||||||||||||||||||||||||
Second Quarter | 7.49 | 6.64 | 97.43 | 86.45 | 5.44 | 4.49 | |||||||||||||||||||||||||||||||||||
First Quarter | 7.06 | 5.74 | 90.21 | 74.53 | 5.41 | 4.38 | |||||||||||||||||||||||||||||||||||
2013 | Fourth Quarter | 7.01 | 5.97 | 90.15 | 76.64 | 5.05 | 4.27 | ||||||||||||||||||||||||||||||||||
Third Quarter | 6.25 | 5.12 | 80.89 | 67.42 | 4.69 | 4.14 | Third Quarter | 6.69 | 4.48 | 84.32 | 59.37 | 7.47 | 4.49 | ||||||||||||||||||||||||||||
Second Quarter | 7.03 | 5.08 | 90.19 | 65.95 | 5.67 | 4.10 | Second Quarter | 7.63 | 6.19 | 96.41 | 80.20 | 8.67 | 6.45 | ||||||||||||||||||||||||||||
First Quarter | 7.26 | 6.62 | 94.36 | 85.00 | 5.94 | 5.20 | First Quarter | 6.53 | 6.01 | 83.80 | 76.93 | 7.18 | 5.68 | ||||||||||||||||||||||||||||
Annual Data | |||||||||||||||||||||||||||||||||||||||||
Annual Data | Annual Data | ||||||||||||||||||||||||||||||||||||||||
2016 | 2016 | 5.95 | 3.88 | 77.47 | 49.82 | 5.67 | 4.27 | ||||||||||||||||||||||||||||||||||
2015 | 2015 | 7.63 | 4.35 | 96.41 | 55.73 | 8.67 | 4.49 | ||||||||||||||||||||||||||||||||||
2014 | 8.18 | 5.74 | 105.28 | 74.53 | 6.56 | 4.38 | 2014 | 8.18 | 5.74 | 105.28 | 74.53 | 6.56 | 4.38 | ||||||||||||||||||||||||||||
2013 | 7.26 | 5.08 | 94.36 | 65.95 | 5.94 | 4.10 | 2013 | 7.26 | 5.08 | 94.36 | 65.95 | 5.94 | 4.10 | ||||||||||||||||||||||||||||
2012 | 9.63 | 6.43 | 124.95 | 82.69 | 7.86 | 5.80 | 2012 | 9.63 | 6.43 | 124.95 | 82.69 | 7.86 | 5.80 | ||||||||||||||||||||||||||||
2011 | 8.75 | 6.45 | 111.89 | 83.21 | 9.27 | 6.86 | |||||||||||||||||||||||||||||||||||
2010 | 7.94 | 5.75 | 102.69 | 73.80 | 13.90 | 7.77 |
ITEM 10. | ADDITIONAL INFORMATION |
A. SHARE CAPITAL |
· | recovery of losses, if any; |
· | allocations to the statutory surplus reserve fund; and |
· | allocations to a discretionary surplus reserve fund if approved by the shareholders. |
· | where the number of directors is less than the number stipulated in the PRC Company Law or two-thirds of the number specified in our articles of association; |
· | where our unrecovered losses reach one-third of the total amount of our actually paid-in share capital; |
· | where shareholder(s) holding 10% or more of our issued and outstanding voting shares request(s) in writing the convening of an extraordinary general meeting; |
· | whenever our board deems necessary or our board of supervisors so requests; or |
· | circumstances provided in the articles of association. |
· | an increase or reduction of our share capital or the issue of shares, including stock distributions, of any class, warrants and other similar securities; |
· | issuance of debentures; |
· | our division, merger, dissolution and liquidation; (Shareholders who object to a proposed division or merger are entitled to demand that either we or the shareholders who approved the merger purchase their shares at a fair price.) |
· | amendments to our articles of association and its appendices; |
· | change of our company form; |
· | acquisition or disposal of material assets or provision of material guarantee within one year, with the value exceeding 30% of our latest audited total assets; |
· | any stock incentive plan; |
· | any other matters required by laws and regulations or our articles of association and its appendices or considered by the shareholders in a general meeting and which they have resolved by way of an ordinary resolution to be of a nature which may have a material impact on us and should be adopted by special resolution. |
· | varying the rights of existing classes of shares; |
· | voting rights; |
· | our power to purchase our own shares; |
· | rights of non-controlling shareholders; and |
· | procedure on liquidation. |
· | we issue domestic ordinary shares and/or overseas-listed foreign-invested shares, either separately or concurrently, in numbers not exceeding 20% of the number of domestic ordinary shares and overseas-listed foreign-invested shares then in issue, respectively, in any 12-month period, as approved by a special resolution of the shareholders; or |
· | if our plans for issuing domestic ordinary shares and overseas-listed foreign-invested shares upon our establishment are implemented within fifteen months of the date of approval by the China Securities Regulatory Commission. |
· | to relieve a director or supervisor from his or her duty to act honestly in our best interests; |
· | to approve the expropriation by a director or supervisor (for his or her own benefit or for the benefit of another person) of our assets in any way, including, without limitation, opportunities which may benefit us; or |
· | to approve the expropriation by a director or supervisor (for his or her own benefit or for the benefit of another person) of the individual rights of other shareholders, including, without limitation, rights to distributions and voting rights (save according to a restructuring of our company which has been submitted for approval by the shareholders in a general meeting in accordance with our articles of association and its appendices). |
· | is in a position to elect half or more of the board of directors; |
· | has the power to exercise, or to control the exercise of, 30% or more of our voting rights; |
· | acting separately or in concert with others, holds 30% or more of our issued and outstanding shares,; or |
· | acting separately or in concert with others, has de facto control of us in any other way. |
· | is necessary to enable them and the public to appraise the position of us and our subsidiaries; |
· | is necessary to avoid the establishment of a false market in its securities; and |
· | might be reasonably expected materially to affect market activity in and the price of its securities. |
· | Shareholders holding 10 percent or more of the shares of the company are entitled to petition the court to dissolve the company if (i) the company is in serious operational difficulties; (ii) its continuing existence will seriously prejudice the interests of the shareholders; and (iii) such difficulties cannot be resolved through any other means; |
· | Shareholders holding 1 percent or more of the shares of the company for more than 180 consecutive days are entitled to request the board of supervisors (in terms of directors and senior management) or the board of directors (in terms of supervisors) to bring legal proceedings, or bring legal proceedings in their own name on behalf of the company where it is in emergency and the company will be subject to irreparable loss if not to do so, against directors, supervisors or senior management who fail to comply with the laws and regulations or the company’s articles of association in the course of performing their duties and cause loss to the company; |
· | Shareholders who oppose the company’s decision on merger or separation are entitled to request the company to repurchase their shares; and |
· | Shareholders holding 10 percent or more of the voting rights of the company are entitled to convene a shareholders’ meeting. |
· | between a holder of overseas-listed foreign-invested shares and us; |
· | between a holder of overseas-listed foreign-invested shares and any of our directors, supervisors, general managers, deputy general managers or other senior officers; or |
· | between a holder of overseas-listed foreign-invested shares and a holder of domestic ordinary shares |
· | any relevant transfer fee is paid; |
· | the instrument of transfer is only related to H shares listed in Hong Kong; |
· | the instrument of transfer is accompanied by the share certificates to which it relates, or such other evidence is given as may be reasonably necessary to show the right of the transferor to make the transfer; |
· | the stamp duty which is chargeable on the instrument of transfer has already been paid; |
· | if it is intended that the shares be transferred to joint owners, the maximum number of joint owners shall not be more than four (4); and |
· | the Company does not have any lien on the relevant shares. |
C. MATERIAL CONTRACTS |
D. EXCHANGE CONTROLS |
E. TAXATION |
· | an individual who is a citizen or resident of the United States; |
· | a corporation created in or organized under the laws of, the United States or any State thereof or the District of Columbia; |
· | an estate the income of which is includible in gross income for United States federal income tax purposes regardless of its source; or |
· | a trust (a) the administration of which is subject to the primary supervision of a United States court and which has one or more United States persons who have the authority to control all substantial decisions of the trust or (b) a trust that has otherwise elected to be treated as a United States person under the Code. |
F. DIVIDENDS AND PAYING AGENTS |
G. STATEMENT BY EXPERTS |
I. SUBSIDIARY INFORMATION |
ITEM 11. | QUALITATIVE AND QUANTITATIVE DISCLOSURES ABOUT MARKET RISK |
(RMB equivalent in millions, except interest rate) | ||||||||||||||||||||||||||||||||
As of December 31, 2016 | ||||||||||||||||||||||||||||||||
Expected Maturity Date | Total carrying amount | Fair value | ||||||||||||||||||||||||||||||
2017 | 2018 | 2019 | 2020 | 2021 | Thereafter | |||||||||||||||||||||||||||
Assets | ||||||||||||||||||||||||||||||||
Cash and cash equivalent | ||||||||||||||||||||||||||||||||
In US Dollar | 20,745 | - | - | - | - | - | 20,745 | 20,745 | ||||||||||||||||||||||||
In HK Dollar | 82 | - | - | - | - | - | 82 | 82 | ||||||||||||||||||||||||
In Japanese Yen | 12 | - | - | - | - | - | 12 | 12 | ||||||||||||||||||||||||
In Euro | 41 | - | - | - | - | - | 41 | 41 | ||||||||||||||||||||||||
Others | 66 | - | - | - | - | - | 66 | 66 | ||||||||||||||||||||||||
Time deposits with financial institutions | ||||||||||||||||||||||||||||||||
In US Dollar | 7,843 | - | - | - | - | - | 7,843 | 7,843 | ||||||||||||||||||||||||
Liabilities | ||||||||||||||||||||||||||||||||
Debts in US Dollar | ||||||||||||||||||||||||||||||||
Fixed rate | 42 | 6,944 | 25 | 25 | 283 | 12,091 | 19,410 | 19,289 | ||||||||||||||||||||||||
Average interest rate | 1.40 | % | 0.94 | % | 1.41 | % | 1.41 | % | 4.07 | % | 1.11 | % | ||||||||||||||||||||
Variable rate | 14,591 | - | - | - | - | - | 14,591 | 14,584 | ||||||||||||||||||||||||
Average interest rate(1) | 1.40 | % | - | - | - | - | - | |||||||||||||||||||||||||
Debts in HK Dollar | ||||||||||||||||||||||||||||||||
Fixed rate | - | - | - | - | - | - | - | - | ||||||||||||||||||||||||
Average interest rate | - | - | - | - | - | - | ||||||||||||||||||||||||||
Variable rate | 1,969 | - | - | - | - | - | 1,969 | 1,969 | ||||||||||||||||||||||||
Average interest rate(1) | 1.68 | % | - | - | - | - | - | |||||||||||||||||||||||||
Debts in Euro | ||||||||||||||||||||||||||||||||
Fixed rate | - | - | - | - | - | - | - | - | ||||||||||||||||||||||||
Average interest rate | - | - | - | - | - | - | ||||||||||||||||||||||||||
Variable rate | 5 | - | - | - | - | - | 5 | 5 | ||||||||||||||||||||||||
Average interest rate(1) | 0.68 | % | - | - | - | - | - | |||||||||||||||||||||||||
Debts in Singapore Dollar | ||||||||||||||||||||||||||||||||
Fixed rate | - | - | - | - | - | - | - | - | ||||||||||||||||||||||||
Average interest rate | - | - | - | - | - | - | ||||||||||||||||||||||||||
Variable rate | 21 | - | - | - | - | - | 21 | 21 | ||||||||||||||||||||||||
Average interest rate(1) | 1.5 | % | - | - | - | - | - |
As of December 31, 2014 | ||||||||||||||||||||||||||||||||
Expected Maturity Date | Total carrying amount | Fair value | ||||||||||||||||||||||||||||||
2015 | 2016 | 2017 | 2018 | 2019 | Thereafter | |||||||||||||||||||||||||||
Assets | ||||||||||||||||||||||||||||||||
Cash and cash equivalent | ||||||||||||||||||||||||||||||||
In US Dollar | 1,998 | - | - | - | - | - | 1,998 | 1,998 | ||||||||||||||||||||||||
In HK Dollar | 55 | - | - | - | - | - | 55 | 55 | ||||||||||||||||||||||||
In Japanese Yen | 7 | - | - | - | - | - | 7 | 7 | ||||||||||||||||||||||||
In Euro | 21 | - | - | - | - | - | 21 | 21 | ||||||||||||||||||||||||
Others | 65 | - | - | - | - | - | 65 | 65 | ||||||||||||||||||||||||
Time deposits with financial institutions | ||||||||||||||||||||||||||||||||
In US Dollar | 613 | - | - | - | - | - | 613 | 613 | ||||||||||||||||||||||||
Liabilities | ||||||||||||||||||||||||||||||||
Debts in US Dollar | ||||||||||||||||||||||||||||||||
Fixed rate | 7,394 | 4,625 | 37 | 6,107 | 23 | 10,932 | 29,118 | 28,992 | ||||||||||||||||||||||||
Average interest rate | 0.9% | 1.3% | 1.4% | 2.1% | 1.5% | 3.5% | ||||||||||||||||||||||||||
Variable rate | 126,581 | 612 | - | - | - | - | 127,193 | 127,193 | ||||||||||||||||||||||||
Average interest rate(1) | 1.3% | 1.8% | - | - | - | - | ||||||||||||||||||||||||||
Debts in Japanese Yen | ||||||||||||||||||||||||||||||||
Fixed rate | 54 | 54 | 54 | 54 | 54 | 175 | 445 | 492 | ||||||||||||||||||||||||
Average interest rate | 2.6% | 2.6% | 2.6% | 2.6% | 2.6% | 2.6% | ||||||||||||||||||||||||||
Variable rate | - | - | - | - | - | - | ||||||||||||||||||||||||||
Average interest rate(1) | - | - | - | - | - | - | ||||||||||||||||||||||||||
Debts in HK Dollar | ||||||||||||||||||||||||||||||||
Fixed rate | 5 | - | - | - | - | - | 5 | 5 | ||||||||||||||||||||||||
Average interest rate | 1.8% | - | - | - | - | - | ||||||||||||||||||||||||||
Variable rate | - | - | - | - | - | - | ||||||||||||||||||||||||||
Average interest rate(1) | - | - | - | - | - | - | ||||||||||||||||||||||||||
Debts in Euro | ||||||||||||||||||||||||||||||||
Fixed rate | 10 | - | - | - | - | - | 10 | 10 | ||||||||||||||||||||||||
Average interest rate | 3.0% | - | - | - | - | - | ||||||||||||||||||||||||||
Variable rate | 429 | - | - | - | - | - | 429 | 429 | ||||||||||||||||||||||||
Average interest rate(1) | 1.2% | - | - | - | - | - |
(RMB equivalent in millions, except interest rate) | (RMB equivalent in millions, except interest rate) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
As of December 31, 2013 | As of December 31, 2015 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Expected Maturity Date | Total carrying amount | Fair value | Expected Maturity Date | Total carrying amount | Fair value | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2014 | 2015 | 2016 | 2017 | 2018 | Thereafter | 2016 | 2017 | 2018 | 2019 | 2020 | Thereafter | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Assets | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Cash and cash equivalent | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
In US Dollar | 2,868 | - | - | - | - | - | 2,868 | 2,868 | 12,481 | - | - | - | - | - | 12,481 | 12,481 | ||||||||||||||||||||||||||||||||||||||||||||||||
In HK Dollar | 844 | - | - | - | - | - | 844 | 844 | 101 | - | - | - | - | - | 101 | 101 | ||||||||||||||||||||||||||||||||||||||||||||||||
In Japanese Yen | 9 | - | - | - | - | - | 9 | 9 | 8 | - | - | - | - | - | 8 | 8 | ||||||||||||||||||||||||||||||||||||||||||||||||
In Euro | 82 | - | - | - | - | - | 82 | 82 | 39 | - | - | - | - | - | 39 | 39 | ||||||||||||||||||||||||||||||||||||||||||||||||
Others | 28 | - | - | - | - | - | 28 | 28 | 52 | - | - | - | - | - | 52 | 52 | ||||||||||||||||||||||||||||||||||||||||||||||||
Time deposits with financial institutions | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
In US Dollar | 3 | - | - | - | - | - | 3 | 3 | 649 | - | - | - | - | - | 649 | 649 | ||||||||||||||||||||||||||||||||||||||||||||||||
Liabilities | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debts in US Dollar | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fixed rate | 26,655 | 51 | 4,594 | 37 | 6,074 | 10,670 | 48,081 | 50,726 | 13,033 | 40 | 6,493 | 25 | 25 | 11,577 | 31,193 | 30,417 | ||||||||||||||||||||||||||||||||||||||||||||||||
Average interest rate | 1.6% | 1.4% | 1.3% | 1.4% | 1.9% | 3.4% | 1.01 | % | 1.38 | % | 1.88 | % | 1.41 | % | 1.41 | % | 3.48 | % | ||||||||||||||||||||||||||||||||||||||||||||||
Variable rate | 54,918 | 5 | - | - | - | - | 54,923 | 54,926 | 36,777 | - | - | - | - | - | 36,777 | 36,777 | ||||||||||||||||||||||||||||||||||||||||||||||||
Average interest rate(2) | 1.1% | 2.3% | - | - | - | - | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debts in Japanese Yen | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fixed rate | 60 | 60 | 60 | 60 | 60 | 261 | 561 | 625 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Average interest rate | 2.6% | 2.6% | 2.6% | 2.6% | 2.6% | 2.6% | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Variable rate | - | - | - | - | - | - | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Average interest rate(2) | - | - | - | - | - | - | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Average interest rate(1) | 1.14 | % | - | - | - | - | - | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debts in HK Dollar | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fixed rate | 10,953 | - | - | - | - | - | 10,953 | 10,953 | - | - | - | - | - | - | - | - | ||||||||||||||||||||||||||||||||||||||||||||||||
Average interest rate | 4.2% | - | - | - | - | - | - | - | - | - | - | - | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Variable rate | - | - | - | - | - | - | 5 | - | - | - | - | - | 5 | 5 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Average interest rate(2) | - | - | - | - | - | - | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Average interest rate(1) | 1.80 | % | - | - | - | - | - | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debts in Euro | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fixed rate | 4 | - | - | - | - | - | 4 | 4 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Average interest rate | 0.68 | % | - | - | - | - | - | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Variable rate | 7,855 | - | - | - | - | - | 7,855 | 7,855 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Average interest rate(1) | 0.49 | % | - | - | - | - | - |
(RMB equivalent in millions, except interest rate) | ||||||||||||||||||||||||||||||||
As of December 31, 2016 | ||||||||||||||||||||||||||||||||
Expected Maturity Date | Total carrying amount(2) | Fair value | ||||||||||||||||||||||||||||||
2017 | 2018 | 2019 | 2020 | 2021 | Thereafter | |||||||||||||||||||||||||||
Assets | ||||||||||||||||||||||||||||||||
Cash and cash equivalent | ||||||||||||||||||||||||||||||||
In RMB | 103,522 | - | - | - | - | - | 103,522 | 103,522 | ||||||||||||||||||||||||
In US Dollar | 20,745 | - | - | - | - | - | 20,745 | 20,745 |
In HK Dollar | 82 | - | - | - | - | - | 82 | 82 | ||||||||||||||||||||||||
In Japanese Yen | 12 | - | - | - | - | - | 12 | 12 | ||||||||||||||||||||||||
In Euro | 41 | - | - | - | - | - | 41 | 41 | ||||||||||||||||||||||||
Others | 66 | - | - | - | - | - | 66 | 66 | ||||||||||||||||||||||||
Time deposits with financial institutions | ||||||||||||||||||||||||||||||||
In RMB | 10,186 | - | - | - | - | - | 10,186 | 10,186 | ||||||||||||||||||||||||
In US Dollar | 7,843 | - | - | - | - | - | 7,843 | 7,843 | ||||||||||||||||||||||||
Liabilities | ||||||||||||||||||||||||||||||||
Debts in RMB | ||||||||||||||||||||||||||||||||
Fixed rate | 40,904 | 19,614 | 5,353 | 15,533 | 40,161 | 7,711 | 129,276 | 127,737 | ||||||||||||||||||||||||
Average interest rate | 2.21 | % | 2.78 | % | 1.67 | % | 2.00 | % | 0.43 | % | 1.92 | % | ||||||||||||||||||||
Variable rate | 17,288 | 320 | 8,105 | 168 | 1,113 | 26,993 | 26,993 | |||||||||||||||||||||||||
Average interest rate(1) | 3.4 | % | 4.35 | % | 4.28 | % | 4.41 | % | 4.41 | % | ||||||||||||||||||||||
Debts in US Dollar | ||||||||||||||||||||||||||||||||
Fixed rate | 42 | 6,944 | 25 | 25 | 283 | 12,091 | 19,410 | 19,289 | ||||||||||||||||||||||||
Average interest rate | 1.40 | % | 0.94 | % | 1.41 | % | 1.41 | % | 4.07 | % | 1.11 | % | ||||||||||||||||||||
Variable rate | 14,591 | - | - | - | - | - | 14,591 | 14,584 | ||||||||||||||||||||||||
Average interest rate(1) | 1.40 | % | - | - | - | - | - | |||||||||||||||||||||||||
Debts in HK Dollar | ||||||||||||||||||||||||||||||||
Fixed rate | - | - | - | - | - | - | - | - | ||||||||||||||||||||||||
Average interest rate | - | - | - | - | - | - | ||||||||||||||||||||||||||
Variable rate | 1,969 | - | - | - | - | - | 1,969 | 1,969 | ||||||||||||||||||||||||
Average interest rate(1) | 1.68 | % | - | - | - | - | - | |||||||||||||||||||||||||
Debts in Euro | ||||||||||||||||||||||||||||||||
Fixed rate | - | - | - | - | - | - | - | - | ||||||||||||||||||||||||
Average interest rate | - | - | - | - | - | - | ||||||||||||||||||||||||||
Variable rate | 5 | - | - | - | - | - | 5 | 5 | ||||||||||||||||||||||||
Average interest rate(1) | 0.68 | % | - | - | - | - | - | |||||||||||||||||||||||||
Debts in Singapore Dollar | ||||||||||||||||||||||||||||||||
Fixed rate | - | - | - | - | - | - | - | - | ||||||||||||||||||||||||
Average interest rate | - | - | - | - | - | - | ||||||||||||||||||||||||||
Variable rate | 21 | - | - | - | - | - | 21 | 21 | ||||||||||||||||||||||||
Average interest rate(1) | 1.5 | % | - | - | - | - | - | |||||||||||||||||||||||||
(RMB equivalent in millions, except interest rate) | ||||||||||||||||||||||||||||||||
As of December 31, 2015 | ||||||||||||||||||||||||||||||||
Expected Maturity Date | Total carrying amount(2) | Fair value | ||||||||||||||||||||||||||||||
2016 | 2017 | 2018 | 2019 | 2020 | Thereafter | |||||||||||||||||||||||||||
Assets | ||||||||||||||||||||||||||||||||
Cash and cash equivalent | ||||||||||||||||||||||||||||||||
In RMB | 56,252 | - | - | - | - | - | 56,252 | 56,252 | ||||||||||||||||||||||||
In US Dollar | 12,481 | - | - | - | - | - | 12,481 | 12,481 |
Time deposits with financial institutions | ||||||||||||||||||||||||||||||||
In Renminbi | 132 | - | - | - | - | - | 132 | 132 | ||||||||||||||||||||||||
In US Dollar | 613 | - | - | - | - | - | 613 | 613 | ||||||||||||||||||||||||
Liabilities | ||||||||||||||||||||||||||||||||
Debts in RMB | ||||||||||||||||||||||||||||||||
Fixed rate | 23,461 | 1,275 | 46,281 | 2,014 | 4,259 | 52,204 | 129,494 | 125,305 | ||||||||||||||||||||||||
Average interest rate | 4.2% | 4.7% | 3.5% | 3.1% | 3.1% | 1.4% | ||||||||||||||||||||||||||
Variable rate | 20,215 | 6,958 | 1,050 | 344 | 5,000 | 8,819 | 42,386 | 42,386 | ||||||||||||||||||||||||
Average interest rate(1) | 3.9% | 5.6% | 5.6% | 4.2% | 5.2% | 6.8% | ||||||||||||||||||||||||||
Debts in US Dollar | ||||||||||||||||||||||||||||||||
Fixed rate | 7,394 | 4,625 | 37 | 6,107 | 23 | 10,932 | 29,118 | 28,992 | ||||||||||||||||||||||||
Average interest rate | 0.9% | 1.3% | 1.4% | 2.1% | 1.5% | 3.5% | ||||||||||||||||||||||||||
Variable rate | 126,581 | 612 | - | - | - | - | 127,193 | 127,193 | ||||||||||||||||||||||||
Average interest rate(1) | 1.3% | 1.8% | - | - | - | - | ||||||||||||||||||||||||||
Debts in Japanese Yen | ||||||||||||||||||||||||||||||||
Fixed rate | 54 | 54 | 54 | 54 | 54 | 175 | 445 | 492 | ||||||||||||||||||||||||
Average interest rate | 2.6% | 2.6% | 2.6% | 2.6% | 2.6% | 2.6% | ||||||||||||||||||||||||||
Variable rate | ||||||||||||||||||||||||||||||||
Average interest rate(1) | ||||||||||||||||||||||||||||||||
Debts in HK Dollar | ||||||||||||||||||||||||||||||||
Fixed rate | 5 | - | - | - | - | - | 5 | 5 | ||||||||||||||||||||||||
Average interest rate | 1.8% | - | - | - | - | - | ||||||||||||||||||||||||||
Variable rate | - | - | - | - | - | - | ||||||||||||||||||||||||||
Average interest rate(1) | - | - | - | - | - | - | ||||||||||||||||||||||||||
Debts in Euro | ||||||||||||||||||||||||||||||||
Fixed rate | 10 | - | - | - | - | - | 10 | 10 | ||||||||||||||||||||||||
Average interest rate | 3.0% | - | - | - | - | - | ||||||||||||||||||||||||||
Variable rate | 429 | - | - | - | - | - | 429 | 429 | ||||||||||||||||||||||||
Average interest rate(1) | 1.2% | - | - | - | - | - |
In HK Dollar | 101 | - | - | - | - | - | 101 | 101 | ||||||||||||||||||||||||
In Japanese Yen | 8 | - | - | - | - | - | 8 | 8 | ||||||||||||||||||||||||
In Euro | 39 | - | - | - | - | - | 39 | 39 | ||||||||||||||||||||||||
Others | 52 | - | - | - | - | - | 52 | 52 | ||||||||||||||||||||||||
Time deposits with financial institutions | ||||||||||||||||||||||||||||||||
In RMB | 84 | - | - | - | - | - | 84 | 84 | ||||||||||||||||||||||||
In US Dollar | 649 | - | - | - | - | - | 649 | 649 | ||||||||||||||||||||||||
Liabilities | ||||||||||||||||||||||||||||||||
Debts in RMB | ||||||||||||||||||||||||||||||||
Fixed rate | 40,234 | 29,670 | 17,251 | - | 13,000 | 43,096 | 143,251 | 141,583 | ||||||||||||||||||||||||
Average interest rate | 2.08 | % | 2.98 | % | 3.30 | % | - | 2.11 | % | 0.34 | % | |||||||||||||||||||||
Variable rate | 17,538 | 8,778 | 8,935 | 103 | 103 | 650 | 36,107 | 36,107 | ||||||||||||||||||||||||
Average interest rate(1) | 4.12 | % | 3.07 | % | 3.16 | % | 4.39 | % | 4.39 | % | 4.41 | % | ||||||||||||||||||||
Debts in US Dollar | ||||||||||||||||||||||||||||||||
Fixed rate | 13,033 | 40 | 6,493 | 25 | 25 | 11,577 | 31,193 | 30,417 | ||||||||||||||||||||||||
Average interest rate | 1.01 | % | 1.38 | % | 1.88 | % | 1.41 | % | 1.41 | % | 3.48 | % | ||||||||||||||||||||
Variable rate | 36,777 | - | - | - | - | - | 36,777 | 36,777 | ||||||||||||||||||||||||
Average interest rate(1) | 1.14 | % | - | - | - | - | - | |||||||||||||||||||||||||
Debts in HK Dollar | ||||||||||||||||||||||||||||||||
Fixed rate | - | - | - | - | - | - | - | - | ||||||||||||||||||||||||
Average interest rate | - | - | - | - | - | - | ||||||||||||||||||||||||||
Variable rate | 5 | - | - | - | - | - | 5 | 5 | ||||||||||||||||||||||||
Average interest rate(1) | 1.80 | % | - | - | - | - | - | |||||||||||||||||||||||||
Debts in Euro | ||||||||||||||||||||||||||||||||
Fixed rate | 4 | - | - | - | - | - | 4 | 4 | ||||||||||||||||||||||||
Average interest rate | 0.68 | % | - | - | - | - | - | |||||||||||||||||||||||||
Variable rate | 7,855 | - | - | - | - | - | 7,855 | 7,855 | ||||||||||||||||||||||||
Average interest rate(1) | 0.49 | % | - | - | - | - | - |
(2) Carrying amounts are used for loans from Sinopec Group Company and its affiliates as it is not practicable to estimate their fair values because the cost of obtaining discount and borrowing rates for comparable borrowings would be excessive. |
As of December 31, 2013 | ||||||||||||||||||||||||||||||||
Expected Maturity Date | Total carrying amount(4) | Fair value | ||||||||||||||||||||||||||||||
2014 | 2015 | 2016 | 2017 | 2018 | Thereafter | |||||||||||||||||||||||||||
Assets | ||||||||||||||||||||||||||||||||
Cash and cash equivalent | ||||||||||||||||||||||||||||||||
In RMB | 11,215 | - | - | - | - | - | 11,215 | 11,215 | ||||||||||||||||||||||||
In US Dollar | 2,868 | - | - | - | - | - | 2,868 | 2,868 | ||||||||||||||||||||||||
In HK Dollar | 844 | - | - | - | - | - | 844 | 844 | ||||||||||||||||||||||||
In Japanese Yen | 9 | - | - | - | - | - | 9 | 9 | ||||||||||||||||||||||||
In Euro | 82 | - | - | - | - | - | 82 | 82 | ||||||||||||||||||||||||
Others | 28 | - | - | - | - | - | 28 | 28 | ||||||||||||||||||||||||
Time deposits with financial institutions | ||||||||||||||||||||||||||||||||
In RMB | 52 | - | - | - | - | - | 52 | 5 | ||||||||||||||||||||||||
In US Dollar | 3 | - | - | - | - | - | 3 | 3 | ||||||||||||||||||||||||
Liabilities | ||||||||||||||||||||||||||||||||
Debts in RMB | ||||||||||||||||||||||||||||||||
Fixed rate | 63,617 | 11,238 | - | 50,961 | 2,293 | 51,847 | 179,956 | 173,699 | ||||||||||||||||||||||||
Average interest rate | 2.3% | 3.9% | - | 3.3% | 3.4% | 1.4% | ||||||||||||||||||||||||||
Variable rate | 7,668 | 160 | 6,599 | 454 | 105 | - | 14,986 | 14,721 | ||||||||||||||||||||||||
Average interest rate(3) | 5.1% | 6.3% | 5.6% | 5.8% | 6.4% | - | ||||||||||||||||||||||||||
Debts in US Dollar | ||||||||||||||||||||||||||||||||
Fixed rate | 26,655 | 51 | 4,594 | 37 | 6,074 | 10,670 | 48,081 | 50,726 | ||||||||||||||||||||||||
Average interest rate | 1.6% | 1.4% | 1.3% | 1.4% | 1.9% | 3.4% | ||||||||||||||||||||||||||
Variable rate | 54,918 | 5 | - | - | - | - | 54,923 | 54,926 | ||||||||||||||||||||||||
Average interest rate(3) | 1.1% | 2.3% | - | - | - | - |
Debts in Japanese Yen | ||||||||||||||||||||||||||||||||
Fixed rate | 60 | 60 | 60 | 60 | 60 | 261 | 561 | 625 | ||||||||||||||||||||||||
Average interest rate | 2.6% | 2.6% | 2.6% | 2.6% | 2.6% | 2.6% | ||||||||||||||||||||||||||
Variable rate | - | - | - | - | - | - | ||||||||||||||||||||||||||
Average interest rate(3) | - | - | - | - | - | - | ||||||||||||||||||||||||||
Debts in HK Dollar | ||||||||||||||||||||||||||||||||
Fixed rate | 10,953 | - | - | - | - | - | 10,953 | 10,953 | ||||||||||||||||||||||||
Average interest rate | 4.2% | - | - | - | - | - | ||||||||||||||||||||||||||
Variable rate | - | - | - | - | - | - | ||||||||||||||||||||||||||
Average interest rate(3) | - | - | - | - | - | - |
ITEM 12. | DESCRIPTION OF SECURITIES OTHER THAN EQUITY SECURITIES |
A. Debt Securities |
B. Warrants and Rights |
C. Other Securities |
D. American Depositary Shares |
Services | Fees | |
Issuance of ADSs | ||
Cancellation of ADSs | ||
Distribution of cash dividends or other cash distributions | ||
Distribution of ADSs pursuant to stock dividends, free stock distributions or exercises of rights |
Distribution of securities other than ADSs or rights to purchase additional ADSs |
· | Taxes (including relevant interests and fines) and other governmental charges; |
· | such registration fees as may from time to time be in effect, for the registration of deposited securities in the register of members, or for the registration of transfers of deposited securities to the name of the Depositary or its nominee or the Custodian or its nominee on the making of deposits or withdrawals; |
· | such cable, telex and facsimile transmission expenses as are expressly provided in the Deposit Agreement; |
· | such expenses as are incurred by the Depositary in the conversion of foreign currency; |
· | such expenses as are incurred with the compliance with the foreign currency control, ADSs and other deposited securities related laws, regulations and rules; and |
· | any other charge payable by the Depositary, any of the Depositary’s agents, including the Custodian, Depositary, or the agents of the Custodian or Depositary, in connection with the servicing of deposited securities. |
· | reimbursement of application fees: US$ |
· | reimbursement of data infrastructure fees: US$ |
· | reimbursement of proxy procedure fees: US$ |
· | reimbursement of investor relations expenses (including expenses related to non-deal road show, investor meeting and investor relations agency): US$ |
· | the accounting committee and accounting standard committee of public company: US$ |
· | Total: US$ |
ITEM 13. | DEFAULTS, DIVIDEND ARREARAGES AND DELINQUENCIES |
ITEM 14. | MATERIAL MODIFICATIONS TO THE RIGHTS OF SECURITY HOLDERS AND USE OF PROCEEDS |
A. MATERIAL MODIFICATIONS TO THE RIGHTS TO SECURITIES HOLDERS |
B. USE OF PROCEEDS |
ITEM 15. | CONTROLS AND PROCEDURES |
ITEM 16. | RESERVED |
ITEM 16A. | AUDIT COMMITTEE FINANCIAL EXPERT |
ITEM 16B. | CODE OF ETHICS |
ITEM 16C. PRINCIPAL ACCOUNTANT FEES AND SERVICES |
Audit Fees | Audit-Related Fees | Tax Fees | Other Fees | |||||
RMB | — | — | — | |||||
RMB | — | — |
ITEM 16D. EXEMPTIONS FROM THE LISTING STANDARDS FOR AUDIT COMMITTEES |
ITEM 16E. PURCHASES OF EQUITY SECURITIES BY THE ISSUER AND AFFILIATED PURCHASERS |
ITEM 16G. COMPARISON OF NEW YORK STOCK EXCHANGE CORPORATE GOVERNANCE RULES AND CHINA CORPORATE GOVERNANCE RULES FOR LISTED COMPANIES |
89
90
91
92
Not applicable.
Not applicable.
See consolidated financial statements included in this annual report following Item 19.
93
94
* Filed herewith. ** Furnished with this annual report on Form 20-F. SIGNATURE The registrant hereby certifies that it meets all of the requirements for filing on Form 20-F and that it has duly caused and authorized the undersigned to sign this annual report on its behalf. China Petroleum & Chemical Corporation
Date: April CHINA PETROLEUM & CHEMICAL CORPORATION AND SUBSIDIARIES INDEX TO CONSOLIDATED FINANCIAL STATEMENTS
Report of Independent Registered Public Accounting Firm To the Shareholders of China Petroleum & Chemical Corporation, In our opinion, the accompanying consolidated balance sheets and the related consolidated statements of income, comprehensive income, changes in equity and cash flows present fairly, in all material respects, the financial position of China Petroleum & Chemical Corporation (the “Company”) and its subsidiaries (collectively referred to as the “Group”) at December 31, A company’s internal control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles. A company’s internal control over financial reporting includes those policies and procedures that (i) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the company; (ii) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the company are being made only in accordance with authorizations of management and directors of the company; and (iii) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the company’s assets that could have a material effect on the financial statements. Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements. Also, projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate. /s/ PricewaterhouseCoopers Zhong Tian LLP Shanghai, the People’s Republic of China March 24, 2017 CHINA PETROLEUM & CHEMICAL CORPORATION AND SUBSIDIARIES CONSOLIDATED STATEMENT OF INCOME FOR THE YEARS ENDED DECEMBER 31, (Amounts in millions, except per share data)
See accompanying notes to consolidated financial statements. CHINA PETROLEUM & CHEMICAL CORPORATION AND SUBSIDIARIES CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME FOR THE YEARS ENDED DECEMBER 31, (Amounts in millions)
See accompanying notes to consolidated financial statements. CHINA PETROLEUM & CHEMICAL CORPORATION AND SUBSIDIARIES CONSOLIDATED BALANCE SHEET AS OF DECEMBER 31, (Amounts in millions)
See accompanying notes to consolidated financial statements. CHINA PETROLEUM & CHEMICAL CORPORATION AND SUBSIDIARIES CONSOLIDATED STATEMENT OF CHANGES IN EQUITY FOR THE YEARS ENDED DECEMBER 31, (Amounts in millions)
See accompanying notes to consolidated financial statements. CHINA PETROLEUM & CHEMICAL CORPORATION AND SUBSIDIARIES CONSOLIDATED STATEMENT OF CHANGES IN EQUITY (CONTINUED) FOR THE YEARS ENDED DECEMBER 31, (Amounts in millions)
See accompanying notes to consolidated financial statements. CHINA PETROLEUM & CHEMICAL CORPORATION AND SUBSIDIARIES CONSOLIDATED STATEMENT OF CHANGES IN EQUITY (CONTINUED) FOR THE YEARS ENDED DECEMBER 31, (Amounts in millions)
See accompanying notes to consolidated financial statements. CHINA PETROLEUM & CHEMICAL CORPORATION AND SUBSIDIARIES CONSOLIDATED STATEMENT OF CASH FLOWS FOR THE YEARS ENDED DECEMBER 31, (Amounts in millions)
See accompanying notes to consolidated financial statements. CHINA PETROLEUM & CHEMICAL CORPORATION AND SUBSIDIARIES NOTES TO CONSOLIDATED STATEMENT OF CASH FLOWS FOR THE YEARS ENDED DECEMBER 31, (Amounts in millions)
See accompanying notes to consolidated financial statements.
Principal activities China Petroleum & Chemical Corporation (the “Company”) is an energy and chemical company that, through its subsidiaries (hereinafter collectively referred to as the “Group”), engages in oil and gas and chemical operations in the People’s Republic of China (the “PRC”). Oil and gas operations consist of exploring for, developing and producing crude oil and natural gas; transporting crude oil and natural gas by pipelines; refining crude oil into finished petroleum products; and marketing crude oil, natural gas and refined petroleum products. Chemical operations include the manufacture and marketing of a wide range of chemicals for industrial uses. Organization The Company was established in the PRC on February 25, 2000 as a joint stock limited company as part of the reorganization (the “Reorganization”) of China Petrochemical Corporation (“Sinopec Group Company”), the ultimate holding company of the Group and a ministry-level enterprise under the direct supervision of the State Council of the PRC. Prior to the incorporation of the Company, the oil and gas and chemical operations of the Group were carried on by oil administration bureaux, petrochemical and refining production enterprises and sales and marketing companies of Sinopec Group Company. As part of the Reorganization, certain of Sinopec Group Company’s core oil and gas and chemical operations and businesses together with the related assets and liabilities were transferred to the Company. On February 25, 2000, in consideration for Sinopec Group Company transferring such oil and gas and chemical operations and businesses and the related assets and liabilities to the Company, the Company issued 68.8 billion domestic state-owned ordinary shares with a par value of RMB 1.00 each to Sinopec Group Company. The shares issued to Sinopec Group Company on February 25, 2000 represented the entire registered and issued share capital of the Company as of that date. The oil and gas and chemical operations and businesses transferred to the Company were related to (i) the exploration, development and production of crude oil and natural gas, (ii) the refining, transportation, storage and marketing of crude oil and petroleum products, and (iii) the production and sales of chemicals. Basis of preparation Pursuant to the resolution passed at the Directors’ meeting on October 29, 2015, the Company entered into the JV Agreement with Sinopec Assets Management Corporation (“SAMC”) in relation to the formation of the Gaoqiao Petrochemical Co., Ltd. According to the JV Agreement, the Company and SAMC jointly set up Gaoqiao Petrochemical Co., Ltd. for RMB 100 million in cash in 2016. Subsequently, the Company subscribed capital contribution with the net assets of Gaoqiao Branch of the Company and SAMC subscribed capital contribution with the net assets of Gaoqiao Branch of SAMC. The capital contribution was completed on June 1, 2016, after which the Company held 55% of Gaoqiao Petrochemical Co., Ltd.’s voting rights and became the parent company of Gaoqiao Petrochemical Co., Ltd. As Sinopec Group Company controls both the Group and SAMC, the non–cash transaction described above between Sinopec and SAMC has been accounted as business combination under the common control and it has been reflected in the accompanying consolidated financial statements as combination of entities under common control in a manner of predecessor value accounting. Accordingly, the assets and liabilities of Gaoqiao Branch of SAMC have been accounted for at historical cost, and the consolidated financial statements of the Group prior to these acquisitions have been restated to include the results of operation and the assets and liabilities of Gaoqiao Branch of SAMC on a combined basis. The financial condition as of December 31, 2014 and 2015 and the results of operation for the years ended December 31, 2014 and 2015 previously reported by the Group have been restated to include the results of operations and the assets and liabilities of Gaoqiao Branch of SAMC on a combined basis as set out below: F-11
At the completion date, the non–controlling interests amount to RMB 2,137 was recognized in relation to SAMC's 45% interest in Gaoqiao Branch of the Company. The accompanying consolidated financial statements have been prepared in accordance with applicable International Financial Reporting Standards (“IFRS”) as issued by the International Accounting Standards Board (“IASB”). IFRS includes International Accounting Standards (“IAS”) and related F-12
The
The following relevant IFRSs, amendments to existing IFRSs and interpretation of IFRS have been published and are mandatory for accounting periods beginning on or after January 1, IFRS 9, ‘Financial instruments’, addresses the classification, measurement and recognition of financial assets and financial liabilities. The complete version of IFRS 9 was issued in July 2014. It replaces the whole of IAS 39. IFRS 9 introduces a new model for the recognition of impairment losses – the expected credit losses (ECL) model, which constitutes a change from the incurred loss model in IAS 39. IFRS 9 applies to all hedging relationships, with the exception of portfolio fair value hedges of interest rate risk. The new guidance better aligns hedge accounting with the risk management activities of an entity and provides relief from the more “rule-based” approach of IAS 39. IFRS 9 is effective for annual periods beginning on or after January 1, 2018. Earlier application is permitted. Amendments to IFRS 10 and IAS 28 on sale or contribution of assets between an investor and its associate or joint venture. The amendments address an inconsistency between IFRS 10 and IAS 28 in the sale and contribution of assets between an investor and its associate or joint venture. A full gain or loss is recognized when a transaction involves a business. A partial gain or loss is recognized when a transaction involves assets that do not constitute a business, even if those assets are in a subsidiary. IFRS 15, ‘Revenue from contracts with customers’ IFRS 16, ‘Leases’, provides updated guidance on the definition of leases, and the guidance on the combination and separation of contracts. Under IFRS 16, a contract is, or contains, a lease if the contract conveys the right to control the use of an identified asset for a period of time in exchange for consideration. F-13 IFRS 16 requires lessees to recognize lease liability reflecting future lease payments and a ‘right-of-use-asset’ for almost all lease contracts, with an exemption for certain short-term leases and leases of low-value assets. The lessors accounting stays almost the same as under IAS 17 'Leases'. An entity shall apply IFRS 16 for annual reporting periods beginning on or after January 1, 2019. Earlier application is permitted if IFRS 15 is also applied. Amendments to IAS 7, 'Statement of cash flows', the IASB has issued an amendment to IAS 7 introducing an additional disclosure that will enable users of financial statements to evaluate changes in liabilities arising from financing activities. The amendment is part of the IASB’s Disclosure Initiative, which continues to explore how financial statement disclosure can be improved. Amendments to IAS 7 are effective for annual periods beginning on or after January 1, 2017. Amendments to IAS 12, 'Income taxes', the IASB has issued amendments to IAS 12,'Income taxes'. These amendments on the recognition of deferred tax assets for unrealized losses clarify how to account for deferred tax assets related to debt instruments measured at fair value. Amendments to IAS 12 are effective for annual periods beginning on or after January 1, 2017. The accompanying consolidated financial statements are prepared on the historical cost basis except for the remeasurement of available-for-sale securities (Note 2(k)), securities held for trading (Note 2(k)), derivative financial instruments (Note 2(l) and The preparation of the consolidated financial statements in accordance with assets and liabilities that are not readily apparent from other sources. Actual results could differ from those estimates. The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognized in the period in which the estimate is revised if the revision affects only that period, or in the period of the revision and future periods if the revision affects both current and future periods. Key assumptions and estimation made by management in the application of
The consolidated financial statements comprise the Company and its subsidiaries, and the Group’s interest in associates and joint ventures.
Subsidiaries are those entities controlled by the Group. The Group controls an entity when the Group is exposed to, or has rights to, variable returns from its involvement with the entity and has the ability to affect those returns through its power over the entity. The financial statements of subsidiaries are included in the consolidated financial statements from the date that control effectively commences until the date that control effectively ceases. Non-controlling interests at the balance sheet date, being the portion of the net assets of subsidiaries attributable to equity interests that are not owned by the Company, whether directly or indirectly through subsidiaries, are presented in the consolidated balance sheet and consolidated statement of changes in equity within equity, separately from equity attributable to the owners of the Company. Non-controlling interests in the results of the Group are presented on the face of the consolidated statement of income and F-14 the consolidated statement of comprehensive income as an allocation of the total profit or loss and total comprehensive income for the year between non-controlling interests and the owners of the Company. Changes in the Group’s interests in a subsidiary that do not result in a loss of control are accounted for as equity transactions, whereby adjustments are made to the amounts of controlling and non-controlling interests within consolidated equity to reflect the change in relative interests, but no adjustments are made to goodwill and no gain or loss is recognized. When the Group loses control of a subsidiary, it is accounted for as a disposal of the entire interest in that subsidiary, with a resulting gain or loss being recognized in profit or loss. Any interest retained in that former subsidiary at the date when control is lost is recognized at fair value and this amount is regarded as the fair value on initial recognition of a financial asset The particulars of the Group’s principal subsidiaries are set out in Note
An associate is an entity, not being a subsidiary, in which the Group exercises significant influence over its management. Significant influence is the power to participate in the financial and operating policy decisions of the investee but is not control or joint control over those policies. The investments in joint arrangements are classified as either joint operations or joint ventures depending on the contractual rights and obligations each investor has rather than the legal structure of the joint arrangement. A joint venture is a joint arrangement whereby the parties that have joint control of the arrangement have rights to the net assets of the arrangement. Investments in associates and joint ventures are accounted for in the consolidated financial statements using the equity method from the date that significant influence or joint control commences until the date that significant influence or joint control ceases. Under the equity method, the investment is initially recorded at cost and adjusted thereafter for the post acquisition change in the Group’s share of the investee’s net assets and any impairment loss relating to the investment (Note 2(j) and The Group’s share of the post-acquisition, post-tax results of the investees and any impairment losses for the year are recognized in the consolidated statement of income, whereas the Group’s share of the post-acquisition post-tax items of the investees’ other comprehensive income is recognized in the consolidated statement of comprehensive income. When the Group ceases to have significant influence over an associate or joint control over a joint venture, it is accounted for as a disposal of the entire interest in that investee, with a resulting gain or loss being recognized in profit or loss. Any interest retained in that former investee at the date when significant influence or joint control is lost is recognized at fair value and this amount is regarded as the fair value on initial recognition of a financial asset (see
Inter-company balances and transactions and any unrealized gains arising from inter-company transactions are eliminated on consolidation. Unrealized gains arising from transactions with associates and joint ventures are eliminated to the extent of the Group’s interest in the entity. Unrealized losses are eliminated in the same way as unrealized gains, but only to the extent that there is no evidence of impairment.
The consolidated financial statements incorporate the financial statements of the combining entities or businesses in which the common control combination occurs as if they had been combined from the date when the combining entities or businesses first came under the control of the controlling party. The net assets of the combining entities or businesses are combined using the existing book values from the controlling parties’ perspective. No amount is recognized as consideration for goodwill or excess of acquirers’ interest in the net fair value of acquiree’s identifiable assets, liabilities and contingent liabilities over cost at the time of common control combination, to the extent of the continuation of the controlling party’s interest. F-15 The consolidated statement of income includes the results of each of the combining entities or businesses from the earliest date presented or since the date when the combining entities or businesses first came under the common control, where there is a shorter period, regardless of the date of the common control combination. The comparative amounts in the consolidated financial statements are presented as if the entities or businesses had been combined at the previous balance sheet date or when they first came under common control, whichever is shorter. A uniform set of accounting policies is adopted by those entities. All intra–group transactions, balances and unrealized gains on transactions between combining entities or businesses are eliminated on consolidation. Transaction costs, including professional fees, registration fees, costs of furnishing information to shareholders, costs or losses incurred in combining operations of the previously separate businesses, etc., incurred in relation to the common control combination that is to be accounted for by using merger accounting is recognized as an expense in the period in which it is incurred.
The presentation currency of the Group is Renminbi. Foreign currency transactions during the year are translated into Renminbi at the applicable rates of exchange quoted by the People’s Bank of China (“PBOC”) prevailing on the transaction dates. Foreign currency monetary assets and liabilities are translated into Renminbi at the PBOC’s rates at the balance sheet date. Exchange differences, other than those capitalized as construction in progress, are recognized as income or expenses in the “finance costs” section of the consolidated statement of income. The results of foreign operations are translated into Renminbi at the applicable rates quoted by the PBOC prevailing on the transaction dates. Balance sheet items, including goodwill arising on consolidation of foreign operations are translated into Renminbi at the closing foreign exchange rates at the balance sheet date. The income and expenses of foreign operations are translated into Renminbi at the spot exchange rates or an exchange rate that approximents the spot exchange rates on the transaction dates. The resulting exchange differences are recognized in other comprehensive income and accumulated in equity in the other reserves. On disposal of a foreign operation, the cumulative amount of the exchange differences relating to that foreign operation is reclassified from equity to the consolidated statement of income when the profit or loss on disposal is recognized.
Cash equivalents consist of time deposits with financial institutions with an initial term of less than three months when purchased. Cash equivalents are stated at cost, which approximates fair value.
Trade, bills and other receivables are initially recognized at fair value and thereafter stated at amortized cost using the effective interest method, less impairment losses for bad and doubtful debts (Note
Inventories F-16
An item of property, plant and equipment is initially recorded at cost, less accumulated depreciation and impairment losses (Note Gains or losses arising from the retirement or disposal of an item of property, plant and equipment, other than oil and gas properties, are determined as the difference between the net disposal proceeds and the carrying amount of the item and are recognized as income or expense in the consolidated statement of income on the date of retirement or disposal. Depreciation is provided to write off the cost amount of items of property, plant and equipment, other than oil and gas properties, over its estimated useful life on a straight-line basis, after taking into account its estimated residual value, as follows:
Where parts of an item of property, plant and equipment have different useful lives, the cost of the item is allocated on a reasonable basis between the parts and each part is depreciated separately. Both the useful life of an asset and its residual value, if any, are reassessed annually.
The Group uses the successful efforts method of accounting for its oil and gas producing activities. Under this method, costs of development wells, the related supporting equipment and proved mineral interests in properties are capitalized. The cost of exploratory wells is initially capitalized as construction in progress pending determination of whether the well has found proved reserves. The impairment of exploratory well costs occurs upon the determination that the well has not found proved reserves. The exploratory well costs are usually not carried as an asset for more than one year following completion of drilling, unless (i) the well has found a sufficient quantity of reserves to justify its completion as a producing well if the required capital expenditure is made; (ii) drilling of the additional exploratory wells is under way or firmly planned for the near future; or (iii) other activities are being undertaken to sufficiently progress the assessing of the reserves and the economic and operating viability of the project. All other exploration costs, including geological and geophysical costs, other dry hole costs and annual lease rentals, are expensed as incurred. Capitalized costs Management estimates future dismantlement costs for oil and gas properties with reference to engineering estimates after taking into consideration the anticipated method of dismantlement required in accordance with the industry practices and the future cash flows are adjusted to reflect such risks specific to the liability, as appropriate. These estimated future dismantlement costs are discounted at a pre-tax risk-free rate and are capitalized as oil and gas properties, which are subsequently amortized as part of the costs of the oil and gas properties.
Lease prepayments represent land use rights paid to the relevant government authorities. Land use rights are carried at cost less the accumulated amount charged to expense and impairment losses (Note
Construction in progress represents buildings, oil and gas properties, various plant and equipment under construction and pending installation, and is stated at cost less impairment losses (Note F-17 related borrowed funds to the extent that they are regarded as an adjustment to interest charges, during the periods of construction. Construction in progress is transferred to property, plant and equipment when the asset is substantially ready for its intended use. No depreciation is provided in respect of construction in progress.
Goodwill represents amounts arising on acquisition of subsidiaries, associates or joint ventures. Goodwill represents the difference between the cost of acquisition and the fair value of the net identifiable assets acquired. Prior to January 1, 2008, the acquisition of the non-controlling interests of a consolidated subsidiary was accounted for using the acquisition method whereby the difference between the cost of acquisition and the fair value of the net identifiable assets acquired (on a proportionate share) was recognized as goodwill. From January 1, 2008, any difference between the amount by which the non-controlling interest is adjusted (such as through an acquisition of the non-controlling interests) and the cash or other considerations paid is recognized in equity. Goodwill is stated at cost less accumulated impairment losses. Goodwill arising on a business combination is allocated to each cash-generating
Investments in available-for-sale securities are carried at fair value with any change in fair value recognized in other comprehensive income and accumulated separately in equity in other reserves. When these investments are derecognized or impaired, the cumulative gain or loss is reclassified from equity to the consolidated statement of income. Investments in equity securities, other than investments in associates and joint ventures, that do not have a quoted market price in an active market and whose fair value cannot be reliably measured are recognized in the balance sheet at cost less impairment losses (Note Investments in securities held for trading are classified as current assets. Any attributable transaction costs are recognized in the consolidated statement of income as incurred. At each balance sheet date, the fair value is remeasured, with any resultant gain or loss being recognized in the consolidated statement of income.
Derivative financial instruments are recognized initially at fair value. At each balance sheet date, the fair value is remeasured. The gain or loss on
Financial assets and liabilities are presented respectively in the consolidated balance sheet, without any offset. However, they are offset and reported in the balance sheet when satisfied the following: (i) There is a legally enforceable right to offset the recognized amounts. (ii) There is an intention to settle on a net basis or realize the asset and settle the liability simultaneously. The legally enforceable right must not be contingent on future events and must be enforceable in the normal course of business and in the event of default, insolvency or bankruptcy of the Company or the counterparty. F-18
Where a derivative financial instrument is designated as a hedge of the variability in cash flows of a recognized asset or liability or a highly probable forecast transaction or the foreign currency risk of a committed future transaction, the effective portion of any gains or losses on If a hedge of a forecast transaction subsequently results in the recognition of a non-financial asset, If a hedge of a forecast transaction subsequently results in the recognition of a financial asset or a financial liability, the associated gain or loss is reclassified from equity to the consolidated statement of income in the same period or periods during which the asset acquired or liability assumed affects the consolidated statement of income (such as when interest income or expense is recognized). For cash flow hedges, other than those covered by the preceding two policy statements, the associated gain or loss is reclassified from equity to the consolidated statement of income in the same period or periods during which the hedged forecast transaction affects the consolidated statement of income. When a hedging instrument expires or is sold, terminated, exercised, or the entity revokes designation of the hedge relationship but the hedged forecast transaction is still expected to occur, the cumulative gain or loss at that point remains in equity until the transaction occurs and it is recognized in accordance with the above policy. If the hedged transaction is no longer expected to take place, the cumulative unrealized gain or loss is reclassified from equity to the consolidated statement of income immediately.
A fair value hedge is a hedge of the exposure to changes in fair value of a recognized asset or liability or an unrecognized firm commitment, or an identified portion of such an asset, liability or unrecognized firm commitment. The gain or loss from remeasuring the hedging instrument at fair value is recognized in profit or loss. The gain or loss on the hedged item attributable to the hedged risk adjusts the carrying amount of the hedged item and is recognized in profit or loss. When a hedging instrument expires or is sold, terminated or exercised, or no longer meets the criteria for hedge accounting, the Group discontinues prospectively the hedge accounting treatments. If the hedged item is a financial instrument measured at amortized cost, any adjustment to the carrying amount of the hedged item is amortized to profit or loss from the adjustment date to the maturity date using the recalculated effective interest rate at the adjustment date.
The portion of the gain or loss on F-19
The impairment loss is measured as the difference between the asset’s carrying amount and the estimated future cash flows, discounted at the current market rate of return for a similar financial asset where the effect of discounting is material, and is recognized as an expense in the consolidated statement of income. Impairment losses for trade and other receivables are reversed through the consolidated statement of income if in a subsequent period the amount of the impairment losses decreases. Impairment losses for equity securities carried at cost are not reversed. For investments in associates and joint ventures accounted under the equity method (Note 2(a)(ii)), the impairment loss is measured by comparing the recoverable amount of the investment as a whole with its carrying amount in accordance with the accounting policy set out in Note
The carrying amounts of other long-lived assets, including property, plant and equipment, construction in progress, lease prepayments and other assets, are reviewed at each balance sheet date to identify indicators that the assets may be impaired. These assets are tested for impairment whenever events or changes in circumstances indicate that their recorded carrying amounts may not be recoverable. When such a decline has occurred, the carrying amount is reduced to the recoverable amount. For goodwill, the recoverable amount is estimated at each balance sheet date. The recoverable amount is the greater of the fair value less costs to The amount of the reduction is recognized as an expense in the consolidated statement of income. Impairment losses recognized in respect of cash-generating units are allocated first to reduce the carrying amount of any goodwill allocated to the cash-generating unit and then, to reduce the carrying amount of the other assets in the unit on a pro rata basis, except that the carrying value of an asset will not be reduced below its individual fair value less costs to Management assesses at each balance sheet date whether there is any indication that an impairment loss recognized for a long-lived asset, except in the case of goodwill, in prior years may no longer exist. An impairment loss is reversed if there has been a favorable change in the estimates used to determine the recoverable amount. A subsequent increase in the recoverable amount of an asset, when the circumstances and events that led to the write-down or write-off cease to exist, is recognized as an income. The reversal is reduced by the amount that would have been recognized as depreciation had the write-down or write-off not occurred. An impairment loss in respect of goodwill is not reversed.
Trade, bills and other payables are initially recognized at fair value and thereafter stated at amortized cost unless the effect of discounting would be immaterial, in which case they are stated at cost.
Interest-bearing borrowings are recognized initially at fair value less attributable transaction costs. Subsequent to initial recognition, interest-bearing borrowings are stated at amortized cost with any difference between cost and redemption value being recognized in the consolidated statement of income over the period of borrowings using the effective interest method. F-20
Convertible bonds that can be converted to equity share capital at the option of the holder, where the number of shares that would be issued on conversion and the value of the consideration that would be received at that time do not vary, are accounted for as compound financial instruments that contain both a liability component and an equity component. At initial recognition, the liability component of the convertible bonds is measured as the present value of the future interest and principal payments, discounted at the market rate of interest applicable at the time of initial recognition to similar liabilities that do not have a conversion option. Any excess of proceeds over the amount initially recognized as the liability component is recognized as the equity component. Transaction costs that relate to the issuance of the convertible bonds are allocated to the liability and equity components in proportion to the allocation of proceeds. The liability component is subsequently carried at amortized cost. The interest expense on the liability component is calculated using the effective interest method. The equity component is recognized in the capital reserve until the bond is converted or redeemed. If the bond is converted, the capital reserve, together with the carrying amount of the liability component at the time of conversion, is transferred to share capital and share premium as consideration for the shares issued. If the bond is redeemed, the capital reserve is transferred to share premium.
Convertible bonds issued with a cash settlement option and other embedded derivative features are accounted for as compound financial instruments that contain a liability component and a derivative component. At initial recognition, the derivative component of the convertible bonds is measured at fair The derivative component is subsequently remeasured at each balance sheet date and any gains or losses arising from change in the fair value are recognized in the consolidated statement of income. The liability component is subsequently carried at amortized cost until extinguished on conversion or redemption. The interest expense recognized in the consolidated statement of income on the liability component is calculated using the effective interest method. Both the liability and the related derivative components are presented together for financial statements reporting If the convertible bonds are converted, the carrying amounts of the derivative and liability components are transferred to share capital and share premium as consideration for the shares issued. If the convertible bonds are redeemed, any difference between the amount paid and the carrying amounts of both components is recognized in the consolidated statement of income.
A provision is recognized for liability of uncertain timing or amount when the Group has a legal or constructive obligation arising as a result of a past event, when it is probable that an outflow of economic benefits will be required to settle the obligation and a reliable estimate can be made. When it is not probable that an outflow of economic benefits will be required, or the amount cannot be estimated reliably, the obligation is disclosed as a contingent liability, unless the probability of outflow of economic benefits is remote. Possible obligations, whose existence will only be confirmed by the F-21 occurrence or non-occurrence of one or more future events are also disclosed as contingent liabilities unless the probability of outflow of economic benefits is remote. Provisions for future dismantlement costs are initially recognized based on the present value of the future costs expected to be incurred in respect of the Group’s expected dismantlement and abandonment costs at the end of related oil and gas exploration and development activities. Any subsequent change in the present value of the estimated costs, other than the change due to passage of time which is regarded as interest cost, is reflected as an adjustment to the provision and oil and gas properties.
Revenues associated with the sale of crude oil, natural gas, petroleum and chemical products and ancillary materials are recorded when the customer accepts the goods and the significant risks and rewards of ownership and title have been transferred to the buyer. Revenue from the rendering of services is recognized in the consolidated statement of income upon performance of the services. No revenue is recognized if there are significant uncertainties regarding recovery of the consideration due, the possible return of goods, or when the amount of revenue and the costs incurred or to be incurred in respect of the transaction cannot be measured reliably. Interest income is recognized on a time apportioned basis that takes into account the effective yield on the asset. A government grant that becomes receivable as compensation for expenses or losses already incurred with no future related costs is recognized as income in the period in which it becomes receivable.
Borrowing costs are expensed in the consolidated statements of income in the period in which they are incurred, except to the extent that they are capitalized as being attributable to the construction of an asset which necessarily takes a period of time to get ready for its intended use.
Repairs and maintenance expenditure is expensed as incurred.
Environmental expenditures that relate to current ongoing operations or to conditions caused by past operations are expensed as incurred. Liabilities related to future remediation costs are recorded when environmental assessments
Research and development expenditures are expensed in the period in which they are incurred. Research and development expense amounted to RMB
Operating lease payments are charged to the consolidated statement of income on a straight-line basis over the period of the respective leases. F-22
The contributions payable under the Group’s retirement plans are recognized as an expense in the consolidated statement of income as incurred and according to the contribution determined by the plans. Further information is set out in Note Termination benefits, such as employee reduction expenses, are recognized when, and only when, the Group demonstrably commits itself to terminate employment or to provide benefits as a result of voluntary redundancy by having a detailed formal plan which is without realistic possibility of withdrawal.
Income tax comprises current and deferred tax. Current tax is calculated on taxable income by applying the applicable tax rates. Deferred tax is provided using the balance sheet liability method on all temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for taxation purposes only to the extent that it is probable that future taxable income will be available against which the assets can be utilized. Deferred tax is calculated on the basis of the enacted tax rates or substantially enacted tax rates that are expected to apply in the period when the asset is realized or the liability is settled. The effect on deferred tax of any changes in tax rates is charged or credited to the consolidated statement of income, except for the effect of a change in tax rate on the carrying amount of deferred tax assets and liabilities which were previously charged or credited to other comprehensive income or directly in equity. The tax value of losses expected to be available for utilization against future taxable income is set off against the deferred tax liability within the same legal tax unit and jurisdiction to the extent appropriate, and is not available for set off against the taxable profit of another legal tax unit. The carrying amount of a deferred tax asset is reviewed at each balance sheet date and is reduced to the extent that it is no longer probable that the related tax benefit will be realized.
Dividends and distributions of profits proposed in the profit appropriation plan which will be authorized and declared after the balance sheet date, are not recognized as a liability at the balance sheet date and are separately disclosed in the notes to the financial statements. Dividends are recognized as a liability in the period in which they are declared.
Operating segments, and the amounts of each segment item reported in the consolidated financial statements, are identified from the financial information provided regularly to the Group’s chief operating decision maker for the purposes of allocating resources to, and assessing the performance of the Group’s various lines of business.
F-23
The following items are included in selling, general and administrative expenses:
Note:
F-24
Note:
Impairment losses recognized for the chemicals segment were RMB 1,106 , RMB 142 and RMB 2,898 for the years ended December 31, 2014, 2015and 2016, respectively, and comprised of impairment losses of and RMB 917, RMB 142 and RMB 2,840 on property, plant and equipment for the years ended December 31, 2014, 2015 and 2016, respectively, RMB 10 and RMB 58 on construction in progress for the year ended December 31, 2014 and 2016, and RMB 179 on intangible assets of the year ended December 31, 2014. Impairment losses recognized for the refining segment were RMB 29, RMB 9 and RMB 1,245 for the years ended December 31, 2014, 2015 and 2016, on property, plant and equipment, respectively, RMB 410 on construction in progress for the year ended December 31, 2016. These impairment losses relate to certain refining and chemicals production facilities that are held for use. The carrying values of these facilities were written down to their recoverable amounts that were primarily determined based on the asset held for use model using the present value of estimated future cash flows of the production facilities using the pre-tax discount rates for the years ended December 31, 2014, 2015 and 2016, respectively. The primary factor resulting in the impairment losses on long-lived assets of the refining and chemicals segments was due to the suspension of operations of certain production facilities for the years ended December 31, 2014, 2015 and 2016.
F-26
Tax expense in the consolidated statement of income represents:
Reconciliation between actual income tax expense and the expected income tax expense at applicable statutory tax rates is as follows:
Note:
F-27
Note:
The calculation of basic earnings per share for the years ended December 31, F-28
Impairment losses for bad and doubtful debts are analyzed as follows:
Sales are generally on a cash term. Credit is generally only available for major customers with well-established trading records. Amounts due from Sinopec Group Company and fellow subsidiaries are repayable under the same terms. |